^  \T  w 


'> 


IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


&^ 


V^<^^ 


:/ 


4^ 


4^0 


^ 


1.0 


I.I 


I^|2j8    |25 

|io  "^^    H^H 

« «  lU   12.2 

:^  1^  12.0 


I 


1 

M  l|M  1^ 

< 

6" 

► 

Photographic 

Sciences 

Corporation 


33  WEST  MAIN  STRUT 

WIBSTER.N.Y.  M5S0 

(716)872-4503 


\ 


;V 


4 


«- 


■^' 


CIHM/ICMH 

Microfiche 

Series. 


CIHM/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historical  Microreproductions  /  Institut  Canadian  de  microreproductlons  historiques 


Technical  and  Bibliographic  Notaa/Notaa  tachniquaa  at  bibliographiquaa 


Tha  Instituta  haa  anamptad  to  obtain  tha  baat 
original  copy  avcilabia  for  filming.  Faaturaa  of  thia 
copy  which  may  ba  bibliographicaliy  uniqua. 
which  may  altar  any  of  tha  imagaa  in  tha 
reproduction,  or  which  may  significantly  change 
tha  uaual  method  of  filming,  are  checked  below. 


□    Coloured  covera/ 
Couverture  da  eouleur 


r—\    Covera  damaged/ 


Couverture  endommagia 


□   Covers  restored  and/or  laminated/ 
Couverture  reataurte  at/ou  pellicula 

□    Cover  title  miasing/ 
La  titra  da  couverture  manque 

I — I    Coloured  mapa/ 


D 


D 
D 


n 


Cartea  giographiquaa  tt  eouleur 


Coloured  ink  (i.e.  other  than  blue  or  black)/ 
Encre  de  eouleur  (i.e.  autre  que  bleue  ou  noire) 


Coloured  platea  and/or  illuatrationa/ 


I I   Planchea  at/ou  illuatrationa  en  eouleur 


D 


Bound  with  other  material/ 
Reli4  avac  d'autrea  documanta 


Tight  binding  may  eauae  shadowa  or  diatortion 
along  interior  margin/ 

La  re  liure  serrie  peut  cauaar  de  I'ombre  ou  de  la 
diatorsion  la  iong  da  la  marge  Intiiiaura 

Blank  laavaa  added  during  restoration  may 
appear  within  the  text.  Whenever  possible,  these 
have  been  omitted  from  filming/ 
II  se  peut  que  certainea  pagea  blanchaa  ajoutAea 
lore  d'une  reatauration  apparaiaaent  dana  la  texte, 
maia.  lorsque  eela  Atait  poaaible.  eea  pagea  n'ont 
paa  «t«  filmiaa. 

Additional  comments:/ 
Commentairea  supplAmantaires: 


L'Institut  a  microfilm*  la  meilleur  exemplaire 
qu'il  tui  a  iti  poaaible  de  se  procurer.  Las  details 
da  cat  exemplaire  qui  sont  peut-4tre  uniques  du 
point  de  vt^e  bibliographique,  qui  peuvent  ntodifier 
une  image  repioduite,  ou  qui  peuvent  axigar  una 
modification  dana  la  mithoda  normala  de  filmaga 
sont  indiquAs  ei-dessous. 


rT\  Coloured  pages/ 


D 


Pagea  da  eouleur 

Pagea  damaged/ 
Pagea  andommagiea 


□    Pagea  restored  and/or  laminated/ 
Pagea  rastaurias  at/ou  pailicuiies 

0    Pagea  discoloured,  stained  or  foxed/ 
Pagea  dicoiortes.  tachatias  ou  piquias 

□Pagea  detached/ 
Pagea  ditachies 

Showthrough/ 
Tranaparance 

Quality  of  prir 

Qualiti  intgala  de  I'impression 

Includes  supplementary  matarii 
Comprend  du  mattriai  supplimentaira 

Only  edition  available/ 
Seule  Mition  disponible 


r~y\  Showthrough/ 

r~~j  Quality  of  print  variaa/ 

r~n  Includes  supplementary  material/ 

rn  Only  edition  available/ 


Pagea  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  been  refilmad  to 
ensure  the  best  possible  image/ 
Lea  pages  totalament  ou  partiellemant 
obaeurciaa  par  un  feuillet  d'errata.  una  pelura, 
etc.,  ont  M  filmies  i  nouveau  da  fapon  d 
obtenir  la  meilleure  image  poaaible. 


Tha 
tot 


Tha 
poa 
oft 
filn 


Orii 
bafl 
the 
sloi 
oth 
fira 
aloi 
ori 


Thi 
aha 
Tl^ 
wh 

Ma 
difl 
em 
baj 
rigl 
req 
ma 


This  item  is  filmed  at  tha  reduction  ratio  checked  below/ 

Ca  document  est  film*  au  taux  da  reduction  indiqui  ci-dassoua. 

10X  14X  18X  22X 


26X 


XX 


J 


12X 


16X 


20X 


24X 


28X 


32X 


Th«  copy  filinMl  hw  has  lM«n  raproducMl  thanka 
to  tha  ganaroalty  of: 

Douglaa  Library 
Quaan's  Univaraity 


L'axamplaira  ftlmA  fut  raproduh  grica  i  la 
g4fi4roalti  da: 

Douglaa  Library 
Quaan'a  Univc-tity 


Tha  imagaa  appaaring  hara  ara  tha  baat  quality 
poaalbia  conaidaring  tha  condition  and  iagibillty 
of  tha  original  copy  and  in  Icaaping  with  tha 
filming  contract  apacificationa. 


Original  copiaa  in  printad  papar  covara  ara  fllmad 
baginning  with  tha  front  eovar  and  anding  on 
tha  laat  paga  with  a  printad  or  illuatratad  impraa- 
aion,  or  tha  bacic  covar  whan  appropriata.  All 
othar  original  copiaa  ara  fllmad  baginning  on  tha 
firat  paga  with  a  printad  or  Illuatratad  impraa- 
aion,  and  anding  on  tha  laat  paga  with  a  printad 
or  illuatratad  impraaaion. 


Lae  imagaa  auivantaa  ont  *ti  raproduitaa  avac  la 
plua  grand  aoin,  compta  tanu  da  la  condition  at 
da  la  nattatA  da  l'axamplaira  film*,  at  an 
GonformM  avac  laa  conditlona  du  contrat  da 
filmaga. 

Laa  axamplairaa  originaux  dont  la  couvartura  an 
papiar  aat  Imprim4a  aont  filmte  an  commandant 
par  la  pramiar  plat  at  an  tarminant  aoit  par  la 
darnlAra  paga  qui  comporta  una  amprainta 
d'impraaalon  ou  d'llluatratlon,  aoit  par  la  aacond 
plat,  aalon  la  caa.  Toua  laa  autraa  axamplairaa 
originaux  aont  filmia  an  commandant  par  la 
pramlAra  paga  qui  comporta  una  amprainta 
d'impraaalon  ou  d'lliuatration  at  an  tarminant  par 
la  darnlAra  paga  qui  comporta  una  talla 
amprainta. 


Tha  laat  racordad  frama  on  aach  microficha 
ahail  contain  tha  aymbol  -^  (moaning  "CON- 
TINUED"), or  tha  aymbol  ▼  (moaning  "END"), 
whichavar  appliaa. 


Un  daa  aymboiaa  auivanta  apparattra  aur  la 
darnlAra  imaga  da  chaqua  microficha,  aalon  ia 
caa:  la  aymbola  — ^  aignifia  "A  SUIVRS",  la 
aymbola  ▼  aignifia  "FIN". 


Mapa,  plataa,  charta,  ate,  may  ba  fllmad  at 
diffarant  raduction  ratioa.  Thoaa  too  iarga  to  ba 
antiraly  included  In  ona  axpoaura  ara  fllmad 
baginning  In  tha  uppar  laft  hand  corner,  loft  to 
right  and  top  to  bottom,  aa  many  framaa  aa 
raquirad.  Tha  following  diagrama  llluatrata  tha 
mathod: 


Laa  cartaa,  pianchaa,  tableaux,  ate.  |;«uvant  Atra 
filmia  A  daa  taux  da  rAduction  diff Araiita. 
Loraqua  la  document  eat  trap  grand  pour  Atra 
reproduit  en  un  aaui  cllchA,  II  eat  filmA  A  partir 
da  Tangle  aupArleur  gauche,  de  gauche  A  droite, 
et  de  haut  en  baa,  en  prenant  la  nombra 
d'imagea  nAcaaaaira.  Lae  diegrammea  auivanta 
illuatrant  la  mAthode. 


12  3 


1 

2 

3 

4 

5 

6 

z/;/^ 


EVERY  MERCHANT, 
EVERY  BANKI 

EVERY/kEAL  ESTATE  DEALER, 
tVERY  SHIPPER, 
AND  EVERY  O^E   UVING  .IN,  OR  DOING  BUSINESS 
WITH  THE  WEST,  SHOULD  POSSESS  A  COPY  OF 

THE   NEW  COMPILATIOir   OF 

The  Statutes  of  Illinois, 

JUST  PUBUSHED  BY  D.  B.  COOKE  &  CO., 

/n  eompUance  tdth  *d  Act  of  the  Ltgidiatnn. 

The  work  contflns  over  1 500  pages,  bound  in  very  strong  law  sheep, 
aod  is  fumiflied  at  die  following  low  price :       t 


ITT-Tl 
pains  or  ( 
inthiaw 
•nd  inde: 

ThU  e< 
DMiedat 

ICT-Ki 
in  UN,  fti 
th« work 
wiilch  an 
Court  b«) 
foUowi : 

"Wet 
and  publ 
exaoutioi 
the  parol 
B.  Scatea 


l^pring 


Ctbrarg 


KINGSTON,  ONTARIO 


ark  Uiat  no 
oyer  iiaaed 
i  of  content* 

(eneral  law* 

ijt  the  work 
execution  of 
but  the  law 
the  Suprenu 
reeeired,  aa 


Blaokwiu, 
i  mechanical 

'  An  Act  for 
Hon.  Walter 
567.' " 
ON, 
NNBR, 
IRBB8B, 
tfH*  Ootirt, 


ALSO   PUBLISH 

Blackwell  on  Tax  Titles, 

A  Practical  Treatiw  on  the  Power  to  Sell  Land  for  the  non-payment  of  Taxes  asMMed 
thereon,  embracing  the  Deeiiloni  of  the  Federal  Conrta,  and  of  the  Supreme  Judicial  Tribunala 
of  the  wTeral  Statea.  By  B.  S.  Blaokwiu,  of  the  CUoa^  Bar.   1  vol.,  8to.  800  pages.  S6.60. 

FkEEMAN's  Illinois  Digest, 

Being  a  ftiU  and  complete  Digest  and  Compilation  of  all  the  Decision*  of  the  Supreme  Court 
of  the  State  of  Illinois,  flrom  Brreae's  Reports  to  the  16tl)  rolume  of  lUlnoi*  Beportt,  ineln- 
stre.    IroyalSfO.  TOlumes.    Iaw  sheep.    SIO.OO. 

The  Illinois  Reports. 

Breese's  Beporta, 8  6.00  I  Oilman's  Reports.    StoIi 926.00 

Scammon's Reports.    4to1b. 20.00  |  Peck's Reporta.    Srols 40.00 

IN  PRESS. 
Freeman's  Xllinois  Fomui,  Pleadings  and  Practice, 

An  Indispeniable  Hand  Book  for  cTsry  Lawyer,  Olark,  Sheriff,  and  Business  Man. 

p.  B.  COOKE  &  CO., 

Publiahera,  Chioago. 


^\vVS 


tt££ttttfefiA«MMMiMMtM 


PRINTING  AND  BINDING. 

m^»  «^^  »^^i         ' 

OHA8.  SOOTT  &  OO.  ! 

BOOKAND  JOB  PRINTERS 

STEREOTYPERS  AND  RINDERS, 


(HILI.IARD*t   ILOOK,) 


Corner  Clark  and  South  Water  Streets, 
CHICAGO,  ILLINOIS. 


0 


Ml,  |fl  wl  Jsiiri  €m^ 

PRINTINa 

IN    EVERY   VARIETY   OF   STYLE. 

t 

|UR  SACILITIES  are  sneh  that  Books  can  be  Printed,  (Stereotyped,  if 
Desired,)  and  Bound,  without  having  the  ett^tbltMhrnait,  enabling  as  tnns  to 
accomplisli  ranch  saTtng  of  time  and  expense  to  publisher*,  as  well  as  to  pro* 
daoe  a  superior  quality  of  work,  crerything  being  undff  our  own  immeaiate 
supervision. 

HOOK  nxMusnfG 

A.NT)  rxjlhstg. 

Periodicals  of  any  Publication  bound  in  the  most  ftncy  or  substaBtfal  styles, 
in  Calf,  Extra,  Oilt  Morocco,  or  in  the 

SPLENDID  ANTIQUE  STYLE. 

07*BlaQk  Books  Buled  and  Bound  to  any  Pattern. 


»  »  »  >  >yo^»ip^^jS^^ggi»i^^^^^iTy»i 


'^^f'i^^i^i!SS!iSt9w^'9wif^99ir<fm'9^i9wwi 


\e-M«ifi_ 


V 


\ 


!t 


The  Table  of  Oontents  will  be  found  on  the  last  page  of  the  Appen- 
dix, immediately  before  the  Bailioad  and  other  notices. 


ii 


THE 


THEORY  AND  PRACTICE 


or  TBI 


INTERNATIONAL  TRADE 


or  Til 


UNITED  STATES  AND  ENGLAND, 


AND  or  THI  TRAD!  OF  THR 


UNITED  STATES  AND  CANADA : 


WITH 


TABLKS  OK  FEDERAL  CURRENCY,   CANADIAN  CURRENCY 
AND  STERLING,  EXCHANGE  FORMULAS,  etc. 


By   p.    BARRY. 


CHICAGO: 
D.    B.    COOKE    &    CO 

PUBLISHERS. 

1858. 


WV'bOCn^^X^ 


CotoNd  MOordlDg  M  Aet  of  Congren  In  the  year  1868,  by 

P.    BARRY. 

In  th«  Ctotk'i  OflUe  of  (he  DIatriot  Court  of  the  United  Stetei  tot  the  Northern 

DUtriot  of  nilnoii. 


OHA*.    SOOT*   *    00. 
PBinTBBS  *  BIWDERB, 

CMICASO,    ILUKOII. 


V 


TO 

JAKaS  BUOHAVAir. 

Pntldwl  of  tk*  UalM  SUrtMi 

Aire  TO 

LOBD  NAFIXB. 

Britlih  MioMar  •>  WmUm«m, 
TBI  BBrBSSBlTTATiySS  OF  THB  INTKBSBTB  IMTOLTBD, 

ran 

HUMBLB  CONTBIBUTION 

TO  THB  LITIRATURt  OP  INTERNATIONAL  TRAOB, 

n  RMPMtnnxT  moaoiD 

IT  TU 

AUTHOR. 


686i'l 


PREFACE. 


No  apology  is  needed,  at  the  present  time,  in  bringing  the  subject  of 
international  trade  before  the  business  public  ct  the  United  States  and 
Canada,  as  the  people  of  the  latter  country  are  now  warmly  engaged 
ranging  themselves  on  the  dde  of  protection  or  free  trade,  and  there 
are  strong  indications  that  the  people  of  the  United  States  will  promptly 
follow  suit.  The  English  reader  will  bear  willingly  with  the  applica- 
tion of  fomiliar  principles,  where  the  mterests  of  his  conntiy  are  in- 
volved, and  whatever,  therefore,  the  demerits  of  the  matter  of  the 
following  pages,  either  in  ezpresoon  or  in  thought,  they  come  before 
the  public  at  the  proper  time ;  and  it  may  not  be  out  of  place  to  say, 
that  the  writer,  however  tedious  and  inelegant  his  expositions  may 
appear,  has  had  the  benefit  of  several  years'  experience  in  the  practical 
work  of  the  international  trade  of  the  countries  of  which  he  speaks. 
He  has  sought  to  give  expression  to  his  own  thoughts  in  an  unreserved 
and  homely  way,  feeling  satisfied  that  it  is  essential  to  be  understood, 
and  that  a  fundamental  treatment  of  the  subject  matter  is  indispensably 
required. 

The  chapter  on  OanaSian  trade,  embraces  the  Reciprocity  and  Pro- 
tection agitation  that  is  going  on  in  Canada ;  and  Canadians  are  to 
understand  that  the  writer  is  without  partiality  either  to  their  country, 
or  to  the  United  States,  or  to  England,  and  not  identified  with  any 
class  ^r  interest. 

The  same  remark  applies  to  the  last  chapter,  in  which  the  relative 
advantages  of  different  routes  from  the  West  to  the  Seaboard,  are  freely 
canvassed.  There  is  no  other  end  in  view  than  that  of  stating  things 
as  they  really  are ;  and  if  injury  results  to  any  interest,  firom  that  being 
done,  the  mass  at  least  will  reap  the  benefit.  It  is  high  time  that 
American  capitalists  on  the  seaboard,  and  the  grain  and  provision  and 
shipping  interests  of  England,  were  informed  of  the  outs  and  ins  of 
Western  trade,  and  in  an  especial  manner  brought  into  more  immediate 


8 


PBEFAGE. 


sympathy  with  Illinois.  Here,  at  present  and  in  all  time,  is  to  be  found 
the  greatest  aooomnlaiion  of  human  food,  raised  with  the  least  expendi- 
ture of  capital  and  labor,  and  yet  that  aecomulation  finds  its  way  to 
shipping  ports,  in  a  manner  calculated  to  keep  production  down  to  the 
lowest  point.  It  is  not  controlled  by  large  capitalists,  nor  taken  in 
exchange  for  imported  articles,  but  finds  its  way  by  repeated  handlings 
to  the  seaboard.  That  practice  must  be  changed,  and  it  is  by  writing 
and  agitation  that  it  can  be  done.  What  has  built  up  New  York  and 
eveiy  other  great  conmieroial  centre,  but  direct  communication  with 
other  countries?  and  what  but  that  can  develop  fuUy  the  productive 
forces  of  the  West  ?  We  want  the  cottons  of  Manchester,  the  stuffi  of 
Bradford,  and  the  silks  of  Lyons  and  Spitalfields,  put  down  where  the 
wheat  and  com  are  grown,  and  while  we  would  then  have  these  manu- 
fixtures  cheaper,  our  wheat  and  com  would  be  received  by  the  foreigner 
on  better  terms.  The  West  and  Chicago  are  ripe  and  able  for  European 
enterprise,  and  for  the  opening  up  of  what  ultimately  will  become  the 
best  European  market  in  the  United  States ;  and  the  writer's  object 
shall  have  been  attained,  if,  with  the  enunciation  of  sound  principles  of 
trade,  he  has  aided  in  directing  attention  to  a  neglected  but  mutually 
advantageous  field  of  international  intercourse  between  the  Umted 
States  and  Europe. 

Exception  may  be  taken  to  the  low  producing  cost  of  wheat  in  Illi- 
nois, but  the  statement  is  made  advisedly,  as<the  price  at  which  wheat 
can  be  grown  in  the  neighborhood  of  Chicago,  and  sold  at  a  foir 
return  on  the  vested  capital.  Transportation  j&om  one  extremity  of 
Illinois  to  the  other  would  cost  almost  twenty-five  cents  a  bushel,  so 
that  the  statement  has  a  local  meaning  only.  Anywhere  in  Illinois 
wheat  can  be  grown  and  sold  with  profit  at  twenty-five  cents  a  bushel ; 
but  wheat  grown  on  the  Illinois  River,  and  brought  to  Chicago,  could 
not  be  sold  probably  under  thirty-five  to  forty  cents. 

The  tables,  given  in  the  appendix,  will  commend  themselves  to  eveiy 
business  man,  and  although  not  fractionally  exact,  they  will  suit  the 
every  day  purposes  of  the  operator  in  grain  and  produce,  while  the 
calculations  of  exchange  provide  a  rule  for  exactness,  when  in  the 
settling  up  of  business  fractional  exactness  is  required. 


THE 


THEORY  AND  PRACTICE  OF  INTERNATIONAL  TRADE. 


CHAPTER   I. 


ELEKEMTABT  MISGONCGFTIONS. 

§  1.  Thb  theory  and  the  practice  of  international  trade, 
although  agreeing  in  many  points  with  those  governing  our 
domestic  interchange  with  one  another,  are  yet  so  dissimilar 
as  to  rest  mainly  on  opposing  principles,  uid  to  require  a 
study  and  a  treatment  by  themselves.  Domestic  interchange 
is  regulated  in  the  main  by  producing  cost ;  but  foreign  inter- 
change disregards  the  original  producing  cost  in  the  country 
from  which  commodities  are  received;  and  it  is  scarcely 
necessary  to  remark,  that  the  experience  derived  in  domestic 
trade  would  never  qualify  a  man  to  encage  successfully  in 
cotton  and  coffee  barter  with  Brazil ;  nor  for  the  prosecution 
of  a  whaling  venture  in  the  Southern  ocean. 

Before  entering  into  that  interesting  and  instructive  field 
of  speculation,  and  unfolding  the  secret  springs  by  which 
our  produce  and  manufactures  are  distributed  abroad,  and 
the  varied  productions  of  the  world  gathered  to  us,  it  is 
necessary  to  remove  those  misconceptions  which  hitherto 
have  overlaid  the  subject,  and  made  it  so  distasteful  and 
obscure. 

One  of  the  most  patent  of  these  errors  is  a  misapprehension 
and  misuse  of  the  term  wealth.  In  perhaps  nine  cases  out  of 
every  ten,  that  word  is  restricted,  in  its  meaning,  to  what  is 
one  of  its  forms  only,  while  everything  in  its  marketable  state 
that  is  an  object  of  desire,  is  wealth  in  the  same  sense  as 
coined  or  uncoined  gold  and  silver.    What,  for  example,  is 


10 


MISCONCEPTIONS  AS  TO 


■ 

the  difference,  in  point  of  wealth,  in  the  case  of  a  man  who, 
to-day,  has  ten  thousand  dollars'  worth  of  gold,  and  between 
now  and  another  season  shall  have  spent  that  sum  in  brick 
and  mortar  and  other  materials,  and  in  the  labor  necessary  to 
build  a  store  or  dwelling?  Obviously,  his  position  is  un- 
changed, if  the  store  or  dwelling  is  an  object  of  desire  to 
others,  equal  to  the  .aggregate  of  the  outlays  which  he  has 
made.  The  store  or  dwelling  is  in  such  a  case  convertible 
into  coin  at  pleasure ;  and  so  long  as  it  is  so,  it  is  wealth,  in 
every  meaning  of  the  word,  to  the  full  extent  invested.  Gen- 
eralizing this  instance,  we  arrive  at  the  conclusion  that  it  is 
as  desirable  to  hold  one  commodity  possessing  value  as  it  is 
to  hold  another ;  and  the  innumerable  utilities  to  which  people 
place  their  money,  is  the  strongest  possible  confirmation  of  the 
rule. 

Looked  at  in  that  light,  and  in  a  national  point  of  view, 
gold  and  silver  need  not  be  desired  more  than  other  things, 
and  there  should  be  little  reason  for  being  elated  or  depressed, 
as  the  national  treasury  or  the  banks  may  be  well  or  ill 
provided  with  the  precious  metals.  Anything  we  are  pos- 
sessed of,  at  that  point  abroad  where  we  may  wish  to  effect 
the  barter,  can  command  its  equivalent  producing  cost  in 
gold,  and  all  uneasiness  should  therefore  be  removed.  To  be 
sure,  the  presence  or  absence  of  a  specie  reserve  in  the  banks 
is  an  indication  of  the  presence  or  absence  of  unemployed 
capital  within  the  country,  that  may  be  loaned ;  but  the  same 
credit  which  could  hire  the  banker's  gold,  could  assuredly  be 
employed  in  the  purchase  of  something  else,  that  could  be 
resold  and  the  representation  of  its  equivalent,  say  a  promis- 
sory note,  at  once  used  for  the  exigency  of  the  time. 

In  one  point  of  view,  it  is  in  fact  undesirable  to  have  an 
individual's  or  a  nation's  means  represented  in  the  precious 
metals,  as  means  in  that  form  are  unsusceptible  of  increase, 
while  in  almost  any  other  form  they  are  susceptible  of  indefi- 
nite augmentation.  The  case  of  real  estate  in  Chicago,  is  an 
apt  illustration  of  the  increase  that  capital  may  receive  in 
the  form  of  land  and  not  in  the  form  of  gold.  Investments 
made  in  central  city  lots,  in  1838,  have  long  since  yielded  a 


\ 


THE  TEBM  WEALTH. 


11 


thousand  fold,  while  a  five  dollar  coin,  then  wrapped  ap;in 
paper  and  opened  out  a  century  afterward,  would  show  no 
perceptible  change,  and  yield  possihly  a  diminished  Talue. 
To  be  sure,  a  man  may  lend  out  gold  and  derive  an  income  or 
an  increase  from  it ;  but  the  income  or  increase  is  not  from 
the  gold,  but  from  the  commodities  into  which  the  gold  has 
really  passed. 

Still  there  are  those  everywhere  who  would  gather  coin 
and  bullion  from  every  quarter,  and  in  the  hope  of  making 
themselves  and  others  more  wealthy  than  they  aref  restrain 
the  export,  overlooking  the  important  fact  that  gold  and  sil- 
ver are-  desirable  and  useful  to  the  extent  only  that  they  are 
exchangeable  for  other  things ;  and  that  the  human  race 
would  have  been  no  worse  off  had  gold  and  silver  been  un- 
known. 

A  nation  to  be  rich  has  only  to  possess  a  large  abundance 
or  excess  of  useful  products,  and  these  products  are  at  any 
time  convertible  abroad,  either  into  others  or  into  gold  and 
silver ;  if  conversion  is  made  into  the  former,  a  still  greater 
increase  of  the  aggregate  of  wealth  may  be  made ;  and  if  into 
the  latter,  no  increase  may  occur,  but  what  has  been  received 
may  be  preserved  from  hasty  depreciation. 

Following  out  this  deduction,  we  arrive  at  the  rather  sin- 
gular but  not  less  truthful  fact,  that  the  mines  of  California 
are  of  no  benefit  to  the  United  States,  and  that  the  mines  of 
Australia  are  of  no  benefit  to  Great  Britain,  as  the  capital 
expended  in  digging  gold  could  have  been  more  profitably 
employed,  particularly  in  the  western  sections  of  the  United 
States,  in  the  production  of  what  was  to  yield  ulterior  pro- 
ducts, instead  of  producing  what  really  yields  nothing ;  but 
to  the  extent  in  which  labor  and  capital  are  involved,  serves 
only  as  a  medium  of  exchange. 

The  utility  and  real  value  of  the  precious  metals  to  a  coun- 
try will  be  brought  out  by  a  few  practical  illustrations. 

Suppose  that  we  determine  on  an  accumulation  of  the  pre- 
cious metals,  and  in  sending  breadstuffs  across  to  Europe, 
insist  or  arrange  that  so  much  shall  be  paid  in  coin.  A  mere 
barter  then  takes  place ;  we  give  our  wheat,  corn  and  flour, 


12 


MISCONOEPnONB  AS  TO 


and  get  so  mach  English  gold  and  silver  for  them.  The  United  ' 
States  receive  the  product  gold,  and  receive,  it  may  be,  the 
same  quantity  precisely  as  would  have  been  acquired  at  home ; 
and  England  receives  precisely  the  same  quantity  of  wheat, 
corn  and  flour  as  it  receives  for  the  same  value  from  its  own 
farmers.  If,  on  the  other  hand,  the  United  States  had  re- 
ceived manufactures  in  place  of  gold  and  silver,  then,  for  ex- 
ample the  wheat  of  Illinois,  which  costs  the  farmer  twenty-five 
cents  a  bushel,  and  could  ordinarily  be  landed  at  Liverpool 
for  tweihy-five  cents  a  bushel  more,  would,  if  wheat  were 
worth  a  dollar  in  Liverpool,  be  put  into  manufactures  at  an 
advantage  of  fifty  per  cent,  to  the  United  States ;  and  Eng- 
land, on  the  other  hand,  from  its  advantage  in  manufactures 
would,  in  paying  in  these  manufactures,  have  our  wheat  at  a 
lower  valuation  than  it  has  its  own ;  and  thus  the  United 
States  and  England  would  both  be  gainers,  inasmuch,  as  the 
one  would  have  so  muoh  manufactures  and  the  other  so  much 
wheat,  at  a  cheaper  price  than  either  could  be  produced  ;  and 
irrespective  of  the  cost  of  the  manufactures  or  the  wheat,  to 
the  importing  countries,  both  would  be  saleable  at  the  market 
price  and  the  full  difference  would  be  gained. 

The  question,  then,  is  the  advantage  which  the  United 
States  derive  from  importing  gold,  {uid  the  advantage  which 
England  gains  in  importing  wheat;  the  wheat  being  pur^ 
chased  from  the  United  States  in  the  precious  metals. 

The  imported  gold,  we  shall  suppose,  does  not  find  its  way 
into  the  New  York  clearing  house,  but  is  held  against  fresh 
paper  issues,  made  on  its  receipt.  Here,  then,  appears  to  be 
an  addition  to  the  circulating  medium,  and  a  direct  benefit 
to  the  community  at  large.  There  is  more  money  in  the 
country,  and  a  fresh  impetus  is  therefore  given  to  its  pro- 
ductive power.  Such  is  the  popular  theory  of  the  present 
day,  notwithstanding  all  that  has  been  said  and  written,  and 
notwithstanding  the  repeated  teachings  which  experience 
gives  us.  Money  is  useful  as  a  medium  of  exchange  only, 
and  as  dispensing  with  it  may  be  an  inconvenient  amount  of 
barter,  and  inasmuch  as  it  represents  the  capital  involved  in 
its  agquirement,  and  creates  nothing,  and  can  neither  feed  the 


TFS  TEBM  WEALTH. 


18 


hungry  nor  clothe  the  naked,  so  the  amount  represented  by 
it  is  so  much  abstracted  from  productive  use.  If  the  whole 
United  States  were  converted  into  cash  to-morrow,  we.  would 
be  no  richer  than  we  are,  and  our  enormous  treasure  would 
be  worthless,  until  we  had  acquired  another  country,  and  iby 
the  diffusion  of  our  monied  wealth,  put  industry  and  natural 
agents  again  in  motion. 

By  and  by,  and  in  an  especial  manner,  in  the  trade  be- 
tween the  United  States  and  Canada,  we  shall  see  how  little 
money  is  really  needed  in  settling  up  the  balances  of  one 
country  with  another,  and  how  much  the  principle  of  ^barter 
in  reality  obtains.  Suffice  it  here  to  say,  that  business  does 
not  need  an  increase  in  the  circulating  medium,  in  the  same 
ratio  as  its  operations  are  increased.  In  June,  1851,  when 
the  exports  of  the  United  States  were  $218,000,000,  the 
circulation  of  the  banks  of  New  York  State  was  $27,511,787 ; 
while  in  1857,  when  the  exports  stood  at  $862,000,000,  the 
circulation  was  only  $27,122,000,  or  a  tiifle  less  than  at  the 
former  period. 

An  augmentation  of  the  circulation  beyond  a  given  point, 
may  be  unnecessary,  therefore,  even  if  it  could  be  made;  and 
gold  deriving  its  value  from  a  command  over  other  things 
jUst  as  commodities  in  general  have  a  command  over  one 
another,  there  is  no  real  benefit  resulting  from  excessive 
accumulations  of  the  precious  metals ;  but  quite  the  contrary. 
In  receiving  gold  we  generally  receive,  the  mere  fixed  value 
of  what  we  have  sold,  while  in  receiving  other  things,  whose 
values  are  not  steady,  and  whose  comparative  cost  may  be 
less  than  similar  articles  produced  by  ourselves,  we  secure  a 
profit  alike  on  what  we  get  and  on  what  we  give. 

This  point  is  brought  out  clearly  in  the  case  supposed. 
England,  we  have  said,  had  to  purchase  wheat  tcom  the 
United  States  in  gold ;  and  the  United  States  in  receiving 
gold  got  no  more  advantage  from  the  sale  of  wheat,  than  if 
the  sale  had  been  made  for  use  at  home.  On  the  other 
hand,  England,  in  paying  gold  had  not  the  advantage  which 
would  have  been  derived  had  the  produce  been  settled  for 
in  manufactures ;  and  the  same  price  was  paid  for  the  wheat 


14 


MIHCONGEFnONS  AB  TO 


that  woitld  have  been  paid  to  the  English  farmer.  So  far, 
then,  both  countries  are  alike,  inasmuch  as  no  advantage 
has  been  gained ;  but  according  to  the  principle  now  advo- 
cated, the  United  States  has  reci)ived  a  product  which  is 
worthless  in  itself^  while  England  has  received  that  which 
of  itself  can  sustain  labor.  A  greater  quantity  of  food  has 
been  admitted  into  England,  and  an  equivalent  quantity  of 
gold  has  left.  When  the  gold  remained  it  was  producing 
nothing,  but  was  idle  in  the  vaults  of  the  Bank  of  England ; 
and  bread  was  dear,  and  people  stinted  in  their  other  pur- 
chaseSk  With  the  introduction  of  wheat,  the  gold,  which 
be  it  observed,  was  doing  nothing,  leaves  the  country,  and 
its  value  in  the  shape  of  loaves  of  bread  is  put  into  circula- 
tion ;  and  as  a  sequence  to  the  increased  supply  of  bread, 
that  commodity  becomes  cheaper,  and  less  of  the  consumer's 
capital  is  required  to  pay  for  what  really,  under  any  cir- 
cumstances, cannot  be'  done  without;  and  more  capital 
remains  for  investment  iu  other  things.  The  English  com- 
munity is,  therefore,  benefited  by  the  operation.  By  the 
conversion  of  a  certain  amount  of  specie  into  breadstuffs, 
they  have  received  what  they  stood  in  need  of.  The  United 
States  have  parted  with  their  abundance  and  have  the  dead- 
weight gold  instead ;  and  the  United  States  can  use  the  gold 
in  the  same  way  that  England  did ;  but  what  we  insist  on 
is,  that  until  the  gold  is  used,  until  it  has  been  converted 
into  something  else,  no  stimulus  to  trade  can  possibly  occur. 
It  is  not  for  the  gold,  as  gold,  that  the  mechanic  and  the 
laborer  toil,  but  for  the  commodities  into  which  that  can  be 
exchanged.  What  is  needed,  therefore,  to  make  a  nation 
rich  and  prosperous,  is  a  large  accumulation  of  what  all 
consume;  and  the  less  the  amount  employed  as  a  medium 
of  exchange,  the  greater  the  aggregate  stock  of  those  utili- 
ties which  all  desire. 

Supposing  that  England,  under  the  circumstance  of  gold 
being  required,  had  declined  to  buy  the  wheat,  and  with 
the  view  of  relieving  the  distress,  which,  in  a  period  of  a 
high  price  of  the  first  necessary  of  life,  may  be  presumed 
to  prevail,  had  made  a  forced   bank   issue,  of  an  equal 


V 


THE  TEBM  WEALTH. 


15 


amount  to  that  Top^sented  by  the  wheat  purchase,  what  theil 
would  have  been  the  positions  of  England  and  the  nnite4 
States  ?  Let  us  suppose  the  sum  to  be  $60,000,000,  which 
the  Bank  of  England  was  authorized  to  issue  oa  approved 
security.  The  amount  goes  forth,  but  strange  to  say,  the 
notes  are  all  returned,  in  consequence  of  the  circulation  of 
the- country  being  already  full.  No  more  money  is  in  circu- 
lation  than  before  the  loan  was  made,  but  men  have  dis- 
charged their  obligations,  nominally  with  notes,  but  in 
reality  with  the  capital  of  the  Bank  of  England,  which  may 
have  been  consols  or  exchequer  bills.  But  what  is  the  effect 
in  England  ?  Why,  nothing  more  than  this,  that  men  who 
could  not  pay  their  way  before,  have  so  far  paid  it  now,  and 
that  is  all.  There  is  no  increase  in  the  capital  of  the  country, 
but  a  mere  transfer  of  a  certain  amount ;  and  if  suffering 
prevailed  before,  it  will  do  so  still,  until  capital  of  another 
kind  than  gold  and  silver  has  been  put  into  circulation.  The 
United  States,  on  the  other  hand,  would  have  its  wheat,  and 
that  wheat,  in  consequence  of  an  absence  of  demand  from 
England,  would  decline  in  value,  as  compared  with  gold  and 
other  things,  but  its  substantial  qualities  of  sustaining  life 
and  labor  would  be  the  same ;  and  if  a  diminished  money 
price  was  an  injury  to  the  few,  it  would  be  an  unmingled 
blessing  to  the  mass. 

Thes..  views  conflict  with  those  usually  entertained.  It  is 
supposed  that  a  fecund  banking  system  is  only  needed  to  turn 
the  wilderness  into  a  garden,  and  the  solitary  place  into  a 
noisy  workshop.  The  cry  is  that  money  may  be  multiplied. 
Now,  it  must  be  obvious  that  there  is  no  advantage  in  a  peo- 
ple representing  their  means  to  excess  in  money,  as  money  of 
itself  can  accomplish  nothing,  and  its  increase  implies  an 
extinction  of  other  things  really  possessing  that  virtue  which 
money  can  command  but  does  not  have.  It  is  to  be  observed, 
also,  in  the  case  of  a  fixed  issue  of  bank  notes,  that  no  addi- 
tion is  made  to  the  circulation,  but,  that  the  notes  are  at  once 
returned,  and  a  transfer  of  capital  is  what  occurs.  To  make 
tRis  clear,  let  us  revert  to  the  previous  illustration : — ^The 
Bank  of  England  makes  a  forced  issue  of  $50,000,000,  and 


16 


MIBCONCEPnOim  AB  TO 


that  sum  is  at  onoe  absorbed  in  the  way  im  named.  Notes  to 
that  amount  go  into  the  hands  of  certain  parties ;  these 
parties  pay  them  into  the  hands  of  others ;  and  these  present 
them  at  the  counter  of  the  Bank,  and  the  equivalent  is  paid 
in  gold,  which  may  then  be  sent  abroad  beyond  the  kingdom. 
Now,  this  gold  is  capifid ;  it  has  been  dug  in  Oalifomia  or 
Australia,  and  its  value  is  rated  in  other  things,  in  proportion 
to  the  relative  privation  that  is  suffered  in  its  pursuit,  and  its 
purchase  by  the  Bank  of  England  was  at  its  rated  value  in 
something  else.  It  is  capital,  therefore,  and  not  notes  that  is 
required,  and  how  capital  is  to  be  created  by  the  issue  of 
paper  money,  is  not  easy  to  understand.  If  the  notes  were 
based  on  capital,  and  sent  in  for  payment,  then  the  capital 
would  be  transferred,  and  not  created ;  and  if  the  notes  were 
based  on  nothing,  then  we  at  once  commit  the  error  of  over- 
trade, and  sooner  or  later  pay  the  forfeit. 

The  distinction  bet^^een  capital  and  currency,  or  circula- 
tion, has  hitherto  been  too  frequently  overlooked.  Currency 
or  circulation  consists  of  those  sums,  which  are  used  in  the 
payment  of  wages  and  the  carrying  on  of  retail  transactions ; 
and  without  reducing  people  to  a  state  of  barter,  no  curteil- 
ment  of  it  can  be  made.  No  more  money  than  what  is  really 
needed  can  be  put  into  that  channel,  and  so  long  as  money  is 
to  be  had,  the  amount  cannot  be  controlled.  When  there  is 
excess  from  economy  or  other  cause,  the  excess  becomes  cap- 
ital, and  whether  in  the  form  of  coin  or  bills,  it  is  put  into 
bankers'  hands,  and  transferred  from  one  person,  or  from  one 
city  or  continent,  to  another.  That  is  the  characteristic  of 
capital.  It  is  intrinsic  or  representative  wealth,  in  a  tangible, 
appropriative  form,  and  cannot  be  created  by  an  act  of  mere 
volition  only.  Before  a  medium  of  exchange  was  recognized 
and  introduced,  one  commodity  was  trucked  against  another, 
on  the  crude  principles  of  value  which  then  obtained ;  and 
what  change  has  since  taken  place  ?  The  articles,  gold  and 
silver,  after  great  expenditure  of  capital,  were  to  be  had  in  a 
few  regions  of  the  world  only,  and  in  minute  particles,  and 
that  the  inconvenience  of  barter  might  be  removed,  this  linti- 
totion  in'  supply  fitted  them  preeminently  to  become  a  me- 


THE  TEBM  WBAi;rH. 


17 


dium  into  which  other  things  could  be  exchanged.  Into  th^t 
service,  these  metals  were  in  course  of  time  improvised,  and 
a  specific  quantity  of  each  made  into  certain  coins.  That 
practice  still  obtains,  and  it  is  more  correct  to  say  that  the 
weight  of  gold  and  silver  in  certain  coins  is  fixed,  than  to  my 
that  the  values  of  the  metals  are.  For  example,  in  the  United 
States,  two  hundred  and  thirty-two  grains  of  pure  gold  are 
coined  into  a  ten  dollar  piece  ;  and,  in  England,  one  hundred 
and  thirteen  grains  of  pure  gold  are  a  pound  sterling ;  and  if 
the  obstacles  to  the  production  of  gold  were  diminishad,  as 
compared  with  other  things,  then  other  things  would  com- 
mand a  higher  money  value  ;  and  if,  while  the  obstacles  to 
the  production  of  gold  remained  the  same,  the  obstacles  to 
the  production  of  other  things  were  weakened,  then  more  of 
other  things  would  require  to  be  given  in  exchange  for  a  given 
quantity  of  gold. 

Gold,  then,  representing  intrinsic  value,  is  capital  in  the 
same  sense  that  wheat  is,  and  a  nation  possessed  of  it  can 
command  the  purchase  of  other  things  ;  but  as  the  capital  of 
a  nation,  like  the  capital  of  an  individual,  is  susceptible  of 
expression  in  a  given  sum,  it  follows  that  if  so  much  is  in  the 
form  of  gold,  so  much  less  exists  in  other  things ;  and  as  gold 
is  a  mere  medium  of  exchange,  and  of  itself  yields  nothing, 
a  nation  converting  its  whole  resources  into  coin  would  come 
to  a  stands-till  and  starve  ;  and  in  exact  proportion  as  the 
capital  of  a  nation  is  productive  and  transferable,  so  is  its 
people  and  its  commerce  in  a  prosperous  or  unfruitful  state. 

While  we  are  at  present  writing,  (Feb.  1868,)  the  specie 
in  the  New  York  banks  exceeds  thirty  million  dollars,  and 
the  country,  as  a  whole,  is  sufiering  more  than  it  ever  did 
before ;  and  not  until  that  treasure  has  been  diffused  in  trad- 
ing channels,  preliminary  to  its  being  exchanged  for  the  pro- 
ducts of  Europe  and  the  world,  can  contentment  and  vitality 
be  restored.  The  circulation  of  the  country  continues  full, 
but  thirty  millions  of  its  wealth  is  locked  up  unproductively 
in  New  York  city  ;  and  millions  more  in  Philadelphia  and 
Boston  and  other  parts.  If  the  commodities  given  for  that 
gold  had  still  been  retained  in  the  United  States,  we  would 
2 


18 


mSOOIfOEPTIONS  AS  TO  THB 


have  been  not  less  wealthy  than  we  are,  bat  in  the  absence  of 
demand  from  abroad,  these  commodities,  expressed  in  gold 
would  haye  declined  in  value,  bat  without  forfeiting  in  any 
way  their  substantial  powers  of  contributing  to  the  productive 
forces  of  mankind.  We  would  be  in  the  position  with  respect 
to  all  commoditiet,  as  in  the  case  previously  supposed  with 
wheat,  when  England  declined  the  purchase  in  the  precious 
metals;  but  the  situation  would  be  aggravated  in  degree. 
Such,  however,  is  not  our  position  at  the  present  time.  Wo 
have  received  the  precious  metals  in  greater  abundance  than 
we  ever  did  before,  and  yet  our  business  relations  were  never 
further  wrong ;  and  it  will  be  interesting  to  note  hereafter, 
that  as  the  stock  of  gold  became  diminished,  trade  improved 
step  by  step,  demonstrating  beyond  all  doubt  that  other  things 
than  gold  are  entitled  to  the  name  of  wealth,  and  should  be 
business  objects  of  desire. 

•  I 
§  2.    Another  popular  misconception  is  a  supposed  benefit 

to  the  country  from  a  high  price  of  its  agricultural  produce. 
The  income  is  said  to  be  greater,  and  the  accumulation  as  a 
consequence  greater  also.  It  is  said  that  red  western  wheat 
in  New  York  city,  was  worth  $2.10  per  60  lbs.,  on  the  3rd 
January,  1855,  and  on  the  3rd  January,  1858,  that  it  was 
only  worth  $1.10.  Supposing,  then,  that  a  farmer  had  sent 
twenty  thousand  bushels  forward  at  both  these  periods,  he 
would  have  received  precisely  twenty  thousand  dollars  less 
for  the  one  parcel  than  the  other,  and  the  capital  of  the 
country  would  so  far  appear  to  be  curtailed.  Then,  if  the 
production  of  the  country  at  both  periods  was  150,000,000 
bushels,  the  aggregate  returns  would  be  no  less  than 
$150,000,000  against  the  present  year. 

So  far  as  the  farmer  is'  concerned,  we  are  free  to  admit 
that  the  one  year  would  be  much  less  profitable  to  him,  in  a 
money  point  of  view,  than  the  other ;  but  as  the  principal 
customers  of  the  farmer  are  his  own  countrymen,  it  must  bo 
obvious  that  precisely  what  he  acquires  from  these  is  taken 
from  the  general  stock,  and  that  in  place  of  an  augmenta- 
tion of  the  national  wealth,  a  mere  transfer  and  consumption 


PBIOB  OP  AOBIOUimiBAL  PBODUOi: 


19 


in  reality  is  made.  This  point  is  of  easy  iHnstration.  An 
individual  is  in  receipt  of  so  mnch  yearly  salary.  Suppose 
it  is  a  thousand  dollars ;  that,  Arom  that  sum,  four  people 
have  to  be  maintained,  and  that  the  average  oonsomption  of 
each  is  a  barrel  and  a  half  of  flour  per  annum.  The  price  df 
six  barrels  of  flour,  no  matter  what  that  is,  has  to  be  taken 
from  the  thousand  dollars.  If  the  price  is  five  dollars  per 
barrel,  the  expenditure  is  thirty  dollars ;  and  if  the  price  is 
ten  dollars,  then  the  outlay  for  the  commodity  is  doubled. 
Now,  that  flour  is  consumed  and  leaves  no  product.  So 
much  capital  is  virtually  thrown  into  the  sea ;  and  the  only 
benefit  is,  that  lives  dready  existing  are  sustainedi.  An 
equivalent  is  paid  the  farmer,  in  a  transfer  from  the  wages 
of  the  individual ;  the  farmer  has  the  mcmey  that  the  con- 
sumer parted  with,  and  the  consumer  has  nothing ;  but  is 
precisely  in  the  same  condition,  after  the  flour  has  been  con- 
sumed and  paid  for,  as  before  it  was  received.  The  farmer's 
income  is  therefore  derived  exclusively  from  the  capita^  of 
other  people,  and  as  his  stu£f  is  cheap  or  dear,  so  does  he 
absorb  a  lesser  or  greater  amount  of  the  aggregate  that  the 
country  has,  and  leaves  the  less  or  more  for  employment  in 
the  purchase  or  production  of  other  things.  It  is  a  mistake, 
therefore,  to  suppose  that  a  high  price  of  agricultural  pro- 
duce is  advantageous  to  the  country.  The  reverse  is  the 
case,  and  we  shall  see  presently  that  commercial  difficulty 
may  not  unfrequently  be  traced  to  the  absorption  of  capital 
consequent  on  a  high  price  of  bread. 

A  difficulty  here  presents  itself,  which  it  is  necessary  to 
clear  away  before  proceeding  further.  The  individual  who 
bought  the  flour  from  the  farmer,  paid  a  jiortion  of  his 
wages  for  the  flour,  and  it  may  be  said  that  the  money 
having  passed  into  the  farmer's  hands,  the  country  is  at  least 
no  poorer  than  it  was.  This  is  simply  the  fallacy  of  money 
being  the  only  form  of  wealth,  which  has  already  been  con- 
sidered. The  stock  of  money  is  not  affected  by  the  con- 
sumption of  the  flour,  for  the  sufficient  reason  tjiat  bank 
notes  and  coin  would  form  an  indifferent  meal ;  and  under 
no  circumstances  are  ever  intended  to  be  eaten.    It  is  not 


ml, 


'  I  11 


''!i; 


i  r 


20 


MISCONCEPTIONS  AS  TO  THE 


wonderful,  therefore,  that  they  should  remain  after  the  flour 
has  perished ;  but  it  would  have  been  wonderful  if  they  had 
disappeared.  It  is  enough  that  the  flour  has  gone,  and  that 
it  was  raised  by  the  farmer,  in  the  form  of  wheat,  after  a 
period  of  anxiety,  and  an  expenditure  of  means  and  labor ; 
and  after  the  outlay  of  the  miller  in  subjecting  the  wheat  to 
a  costly  process.  The  commodity  was  therefore  exchange- 
able into  gold  or  silver,  or  into  any  product,  either  of  this 
country  or  of  Europe,  and  having  coexisted  with  all  thti 
gold  and  silver  that  there  was,  and  having  been  destroyed, 
the  country  is  the  poorer  for  the  loss. 

But  not  only  is  a  high  price  of  food  pernicious  to  a  people, 
in  the  absorption  of  so  much  of  what  they  earn,  and  for  the 
mere  support  of  life ;  but  commercial  prosperity  and  diffi- 
culty are  intimately  associated  with  the  abundance  and 
scarcity  of  the  staff  of  life.  Observation  has  placed  the  fact 
beyond  a  doubt  that  a  time  of  plenty  stimulates  industry  in 
every  country,  and  a  time  of  dearth  lays  commerce  pros- 
trate ;  and  the  rule  is  absolute.  At  first  thought,  it  would 
seem,  and  it  has  been  often  urged,  that  a  scarcity  of  food  in 
England  and  an  abundance  in  the  United  States,  was  disas- 
trous to  the  former  only,  and  an  unmingled  blessing  to  our- 
selves. A  moment's  consideration  puts  us  right  upon  the 
point.  With  abundance  of  wheat  and  flour,  these  commo- 
dities are  cheap,  and  the  expense  of  living  is  reduced,  and 
every  man  has  so  much  more  for  investment  in  other  things ; 
but  with  an  outside  demand,  that  abundance  is  absorbed, 
and  prices  rise  to  the  level  in  the  country  whence  the 
demand  is  made.  The  resources  of  the  country  are  then 
absorbed  by  the  agricultural  class,  and  seldom  find  their 
way  again  into  trading  channels,  but  are  sunk  in  improve- 
ments, or  in  speculative  purchases  of  wild  western  lands. 
The  farmers,  therefore,  are  the  only  class  benefited  ;  and  it 
is  to  be  observed,  with  respect  to  the  farmers  of  the  United 
States,  that  at  the  lowest  price  which  produce  has  ever 
touched,  they  have  more  than  an  average  return  for  the 
capital  and  labor  they  employ.  No  possible  depreciation  of 
price  can  therefore  injure  them  ;  and  the  high  prices  of  the 


\ 


PMOB  OP  AOWCULTUBAL  PRODUCE. 


81 


past  few  years  have  done  less  good  to  them,  than  harm  td 
others.  Into  this  vital  principle  we  now  proceed  to  inquire. 
According  to  European  econom,ist8,  the  wheat  consumption 
of  the  English  people  is  equal  to  eight  bushels  per  annum, 
for  young  and  old,  of  the  population;  while  in  France, 
where  less  animal  food  and  more  bread  is  eaten,  the  annual 
average  consumption  is  ten  bushels  of  wheat  per  head. 
Taking  the  English  consumption  as  an  approximation  to  our 
own,  and  the  population  of  the  United  States,  in  round 
numbers,  at  30,000,000,  the  home  consumption  of  wheat  for 
the  present  year  will  be  no  less  than  240,000,000  bushels ; 
and  taking  that  quantity  as  a  basis  of  a  calculation,  with 
the  fluctuations  in  price,  since  1850,  we  see  at  a  glance  the 
relatively  greater  absorption  of  the  national  income,  in  one 
year  than  in  another,  and  for  the  self-same  object,  the  pur- 
chase jf  our  daily  bread.  . 


PERIOD. 

BUSHELS  WHEAT. 

FBICE. 

cosf. 

Sen.  1, 1850, 

240,000,000 

$  .80 

$192,000,000 

"    1851, 

240,000,000 

.60 

144,000,000 

1852, 

240,000,000 

.70 

168,000,000 

Jan.  3,  1853, 

240,000,000 

1.25 

300,000,000 

1854, 

240,000,000 

1.78 

427,000,000 

"    1855, 

240,000,000 

2  10 

504,000,000 

1856, 

240,000,000 

1.90 

456,000,000 

1857, 

240,000,000 

1.58 

379,000,000 

"    1858, 

240,000.000 

1.10 

264,000,000 

Not*. — Ab  stated  In  the  text,  the  above  is  only  to  indicate  the  amount  that  the  nation 
pays  for  wheat  at  one  price,  as  compared  with  another  price,  and  the  estimated  pc^iulation 
of  the  present  year  is  the  basis  of  the  calculation  It  is  not,  therefore,  to  be  imv'iieU,  that  th« 
oonsair"Mon  of  wheat  in  the  United  States  in  1860,  and  the  two  years  subseq^ient,  was  the 
lame  e .  ..<  quantity,  of  240,000,000  bushels .  The  population  of  the  country  was  m  jch  lees  in 
1860,  than  it  is  in  1858,  and  as  a  matter  of  course,  the  oonsu^uption  of  wheat  was  less  also  ; 
but  if  the  precise  quantity  of  wheat  consumed  in  1860 and  subsequent  years,  had  been  given, 
the  result  would  have  been  relatively  the  same ;  while  the  above  perspicuous  exposition  of  the 
principle  would  have  been  lost. 

Taking  1851,  the  year  of  the  lowest  price,  with  1856,  the 
year  of  the  highest  price,  we  find  that  the  aggregate  expen- 
diture of  the  latter  year  exceeds  that  of  the  former,  by 
nearly  four  times.  In  1851,  there  was  a  home  expenditure 
of  wheat  of  ^144,000,000,  and  in  1855,  an  expenditure  of 
$504,000,000,  or  an  excess  of  no  less  than  $360,000,000;  a 
a  sum  large  enough  to  build  as  many  more  railroads  as 


..* 


I 


22 


MISCONCEPnONB  AS  TO  'fHE 


!  i 


III  ■■: 

mill 


we  have,  or  more  than  extinguish  all  our  indebtedness  to 
Europe.  To  talk  of  excessive  bank  issues,  of  excessive 
business  credits,  or  even  of  the  wild  land  and  paper  town 
mania,  as  the  moving  causes  of  recent  troubles,  is  ridiculous 
after  that.  The  reiQote  and  secret  agony  was  the  great 
absorption  of  the  nati  m's  capital  from  1853  down  to  1858, 
arising  from  deficient  harvests  both  in  this  country  and 
Europe. 

But  what  was  the  condition  of  the  country  in  1851,  the 
year  of  cheapness,  and  in  1855,  the  year  of  dearth  ?  Let  us 
consult  the  impartial  record  of  Freeman  Hunt: 


1861. 
JANUABT. 

The  money  market  well  supplied. 

FEBBUABT. 

Trade  brisk ;  liberal  credits. 

MABCH. 

Bosiness  in  a  satisfactory  state.  < 

AFBIL. 

Payments  prompt. 

HAT. 

Trade  better,  and  greater  than  ever 
known  before. 

JCLT. 

Panic  in  Liverpool;   no  reason  for 
alarm  in  the  United  States. 

DECBMBEB. 


1S66. 
JANUABT. 

Bank  panic;  disorder  and  pressure. 

FBBBUABT. 

Symptoms  of  returning  confidence. 

MABGH. 

Banks  expanding. 

APBIL. 

Crash  among  the  California  bankers. 

HAT.  ^ 

Great  contraction  of  trade  and  credits. 

JCLT. 

Crops  good ;  trade  reviving. 

DECBMBEB. 


The  temporary  reaction  past.  Betnming  confidence. 

Taking  the  first  four  years  of  cheapness,  and  the  five 
latter  years  of  dearth,  the  conclusion  is  the  same.  From 
1850  to  1854,  we  have  cheapness  and  a  flush  speculative 
state  of  things ;  and  from  1854  to  1858,  we  have  dearness, 
bank  and  trade  contraction,  and  ultimately  more  intense 
depression  than  was  ever  witnessed.  Finally,  we  have  in 
the  one  period,  as  compared  with  the  other,  an  absorption  of 
capital,  for  the  self-same  object,  which  accounts  abundantly 
for  the  phenomena.  In  one  year  we  have  $360,000,000 
more  paid  for  wheat  than  in  another:  an  abstraction  of 
working  capital  which  no  community  could  stand. 

The  commercial  history  of  England  exemplifies  the  princi- 
ple at  every  step.    The  difficulties  of  1826  were  preceded 


PRICE  OF  AOBIOULTUBAL  PRODUCE. 


28 


by  th^  short  crops  and  high  prices  of  1824  and  1825 ;  thei 
difficulties  of  1828,  and  until  the  passing  of  the  Reform 
Bill,  were  consequent  on  a  greater  innual  absorption  of  the 
national  income,  in  buying  bread.  In  1888,  '39,  '40,  '41, 
and  again  in  1847,  we  have  the  same  connection  of  effect 
and  cause.  More  recently,  from  1850  to  1854,  we  have 
prosperous  times  and  cheap  bread ;  and  suddenly  the  sky  is 
overcast,  and  excessive  trading  to  Australia  bears  the  blame. 
The  price  of  wheat,  we  shall  however  find,  was  the  real 
motive  power  at  work;  and  the  recent  pressure  has  been 
aggravated  by  the  increased  cost  of  living  from  1854  to 
1858.  In  1853,  the  average  pri(5e  of  wheat  was  45s.  per 
imperial  quarter,  and  in  1854,  it  was  no  less  than  73s. 
Taking  the  population  at  80,000,000,  we  have  an  equivalent 
consumption  with  that  of  the  United  States,  and  no  less  a 
sum  than  $51,000,000  paid  in  excess  for  wheat  in  1854  than 
was  paid  the  year  before.  Such  a  sudden  tax  upon  the 
national  income  could  not  but  occasion  suffering ;  and  suffer- 
ing greater  in  degree  than  the  then  miscarriages  in  the  Aus- 
tralian trade.  That  excessive  annual  outlay  continued  until 
the  close  of  1857 ;  and  in  the  necessarily  reduced  demand 
for  home  manufactured  products,  we  have  the  phenomena  of 
excessive  exports,  and  a  rotten  trading  system  brought  to 
light.  Business  men  had  their  means  invested  in  manufac- 
tures and  in  trade ;  and  suddenly,  in  the  diminished  quantity 
of  the  staff  of  life,  the  agricultural  interest  absorbed  what 
had  been  sustaining  trade,  and  in  the  vain  effort  of  manu- 
facturers and  traders  to  keep  their  heads  above  water,  exces- 
sive shipments  were  made  to  the  United  States  and  elsewhere ; 
a  course  which,  as  things  happened,  only  staved  off  the  evil 
day,  and  made  its  reckoning  more  severe.  And  yet,  that 
trade  forcing  system  is  looked  upon  in  Europe  and  in  the 
United  States,  as  the  cause  of  the  evil  days  of  1867 ;  while 
in  reality,  that  forcing  system  is  the  effect  of  a  higher  law. 
The  English  manufacturer  and  merchant  found  the  home 
trade  dull,  and  prices  cut  down  to  a  less  than  living  profit, 
and  in  the  hope  of  better  times  sent  their  stuff  abroad, 
receiving  those  advances  which  their  wants  required.    The 


If 
i 


ij 


ir  i 


24 


MISCONCEPTIONS  AS  TO  THE 


American  manufacturer  and  merchant  did  the  same  ;  a'hd  yet 
all  are  blamed,  and  efforts  and  sacrifices  are  charged  against 
them.    If,  however,  the  earth  had  yielded  its  abundance  in 

1855  and  1856,  the  breach  in  business  capital  would  speedily 
have  been  repaired;  but  wheat  touched  a  higher  price  in 

1856  than  it  did  in  1854,  and  when  the  commercial  fabric 
once  tottered,  nothing,  under  the  circumstances,  could  pre- 
vent a  fall.  How  noble,  therefore,  the  struggle  of  the  com- 
mercial class  against  the  accumulated  odds  of  the  deficient 
harvests  of  four  successive  years;  and  how  unmerited  the 
opprobrium  that  has  been  heaped  upon  them.  Would  we 
not  have  blushed,  if  without  a  struggle,  the  first  wave  of 
adversity,  had  put  the  commercial  system  of  the  country  and 
the  world  into  one  disordered  mass  of  liquidation  ? 

Taking  the  population  of  Great  Britain  at  30,000,000,  we 
have  in  the  following  table,  the  comparative  annual  cost  of 
wheat,  for  the  same  period  embraced  in  the  previous  table 
for  the  United  States  : 


PERIOD. 

BV8HELS  WHBAT. 

PRICE. 

<  OOBT. 

1850, 

240,000,000 

$1.21 

$290,000,000 

1851, 

240,000,000 

1.20 

288,000,000 

1852, 

240,000,000 

1.20 

288,000,000 

1853, 

240,000,000 

1.34 

321,000,000 

1854, 

240,000,000 

2.20 

628,000,000 

1855, 

240,000,000 

2.17 

520,000,000 

1856, 

240,000,000 

2.20 

528,000,000 

1857, 

240,000,000 

1.81 

434,000,000 

1858, 

240,000,000 

1.60 

384,000,000 

Note. — The  remarks  accompaDying  the  previous  table,  apply  to  this  also  ;  the  otjeot  to 
uoertain  the  absorption  of  the  annual  Income  at  one  price,  and  at  another  price  being  the 
■ame.  The  computed  population  of  Great  Britain  being  precisely  the  same  as  that  of  the 
United  States  in  1868,  the  quantity  of  wheat  entering  into  consumption  is  the  same.  Com- 
paring the  cost  to  ourselTes  and  the  cost  to  Qreat  Britain,  the  advantage  of  cheap  living  iH 
largely  in  flkvor  of  the  United  States. 

This  table,  therefore,  verifies  what  we  have  said.  The 
quantity  of  wheat  essential  to  sustain  the  British  population 
for  a  year,  cost  in  1850,  the  sum  of  $290,000,000,  only  ;  and 
in  1854  and  again  in  1856,  the  same  quantity  of  wheat  cost 
$628,000,000  ;  an  extra  absorption  of  the  annual  income  in 
each  of  these  two  years,  of  no  less  than  $338,000,000  ;  a  sum 
large  enough  to  create  trading  dijficulty;  but  figured  up 


PRIOB  OF  AORICULTUBAL  PRODUCE. 


25 


with  the  yearly  excess,  till  1858,  the  wonder  is  that  recent 
troubles  have  been  so  well  got  through.  '      * 

Not  only  does  the  trade  of  Britain,  and  our  own,  bear 
testimony  to  the  serious  consequences  arising  from  the  fluctu- 
ations in  the  price  of  bread ;  but  the  trade  of  Belgium  and 
of  France  teach  the  same  lesson.  In  fine,  wherever  bread 
is  cheap,  there  contentment  and  prosperity,  in  the  absence 
of  any  disturbing  cause,  will  be  found  invariably  to  pre- 
vail; and  whenever  a  sudden  and  increased  absorption  is 
required  to  pay  for  the  same  measure  of  the  same  product, 
and  that  product  the  staff  of  life,  then,  in  precise  proportion 
to  the  increase  and  the  continuance  of  the  altered  state  of 
things,  disorganization  and  suffering  will  be  found.  It  is 
nothing  that  the  extra  abstracted  wealth  passes  into  other 
hands,  and  does  not  leave  the  country.  It  leaves  those 
channels  in  which  the  laborer  and  the  handicraft  earn  their 
daily  bread ;  and  the  factory  and  the  work-shop  become  still 
and  silent ;  and  their  once  happy,  thrifty  inmates  are  thrown 
upon  the  world,  and  there  must  remain  until  the  advent  of 
better  times. 

There  remains  another  point  needing  illustration.  We 
have  seen  that,  even  although  the  crops  of  the  United  States 
are  in  great  abundance,  if  the  crops  of  England  shall  have 
failed,  the  demand  or  wants  of  England  will  raise  prices 
here  until  a  trading  level  has  been  reached.  We  then  ex- 
perience all  the  influences  of  a  dearth  among  ourselves,  and 
the  national  income  becomes  absorbed  unduly  in  sustaining 
life ;  and  every  business  interest,  with  the  exception  of  the 
agricultural,  promptly  suffers. 

Upon  this  point,  the  commercial  history  of  England  is 
very  clear.  During  the  years  preceding  1838,  when  the 
action  of  the  English  Corn  Law  precluded  the  importation 
of  foreign  wheat  intO'  England,  until  prices  touched  a  given 
point,  the  low  price  of  bread  on  the  continent  of  Europe 
stimulated  manufactures  to  a  great  extent  in  France  and  Bel- 
gium, and  when  the  bad  English  harvests  from  1838  to  1841 
raised  wheat  prices  in  England  to  the  point  which  admitted  of 
continental  imports,  and  raised  prices  on  the  continent  to  the 


» 


^ mSOONOEPTIOMB  AS  TO  THE 


i   I 


l> 


I  111 


i  Pi 


English  level,  the  manafactores  of  Belgium  and  France  and 
HambArg  violently  ooUapsed,  and  general  suffering  at  once 
followed. 

This,  we.  Inust  admit,  is  rather  an  old  instance,  but  it  is 
not  less  conclusive  on  that  account.  Like-  effects  follow  like 
causes  in  all  time,  ahd  it  would  perhaps  be  difficult,  in  the 
whole  range  of  history,  to  find  an  instance  more  free  from 
disturbing  elements,  and  less  susceptible  of  doubt.  Eighteen 
hundred  and  thirty-eight  occupies  a  position  midway  between 
the  revolutions  I  of  '80  and  '48,  and  general  contentment  and 
prosperity  prevailed.  England  was  then  self-supporting, 
growing  all  the  wheat  and  grain  that  was  consumed,  and  the 
continent  of  Europe  was  doing  the  same.  So  much  was  this 
the  case,  that  in  1830,  wheat  was  one  price  in  Britain,  an- 
other price  in  France,  and  another  in  Dantzic.  In  the  first- 
named  country  the  imperial  quarter  averaged  64s  Zd;  in 
France  4l5,  and  in  Dan^c,  only  34s  M.  In  1837  the  same 
irregular  rates  were  ruling :  wheat  in  Britain  was  55s  lOd ; 
in  France  41s,  and  in  Dantzic  29s.  All  at  once,  in  1838, 
the  English  harvest  failed,  and  the  price  of  wheat  advanced 
promptly  to  that  point  which  admitted  of  the  continent  en- 
gaging in  the  trade.  Wheat,  and  other  cereals  in  propor- 
tion, started  everywhere  to  that  level  which  admitted  of  a 
mere  average  profit  on  the  shipping  trade.  The  French,  the 
Flemish  and  the  Prussian  laborers  now  found  their  little  in- 
comes insufficient  to  provide  anything  beyond  the  staff  of  life ; 
and  unprecedented  difficulty  accompanied  a  large  influx  of 
the  precious  metals ;  and  some  years  elapsed  before  the 
manufacturing  and  trading  interests  regained  their  former 
vigorous  and  healthy  state.  Difficulty  in  England  then  forced 
English  manufactures  into  every  market,  irrespective  of  all 
protective  duties  that  prevailed,  and  until  that  game  was 
played  anr"  rroro  pi\  pitious  seasons  had  come  round,  every 
interest  Wu6  sacrificti^d  everywhere,  in  the  meting  out  of  a 
deficient  stock  of  that  great  necessary  for  which  all  will  make 
any  sacrifice. 


V 


BALANOB  OF  TRADE. 


2T 


^  8.  Another  popular  misconoeption  is  that  known  as  th^ 
theory  of  the  balance  of  trade ;  or  the  means  of  making  a 
nation  rich,  and  preventing  it  from  becoming  poor.  This 
theory  is  not  a  modem  one,  but  of  very  early  date,  and  is 
based  on  the  assumption  that  what  a  nation  gives  to  otherii, 
those  others  have  to  pay ;  and  what  a  nation  gets,  has  in  the 
same  way  to  be  paid ;  and  the  only  way,  therefore,  for  a 
nation  to  increase  in  wealth,  is  to  give  more  than  it  receives ; 
in  other  words,  to  export  more  to  foreign  countries  than  it 
imports.  The  difference  between  the  exports  and  the  im- 
ports is  the  balance  of  trade,  and  is  said  to  be  in  favor  of  or 
against  a  country  as  the  exports  or  the  imports  may  happen 
to  prevail. . 

The  following  table  gives  the  aggregate  exports  and  im- 
ports of  the  United  States  since  1850 : 


SKDINO  JCMB  30. 

TOTAL  BZPOBTB. 

TOTAL  IMPOBTS. 

dmio't  imposts. 

1850 

$151.8 

$178.1 

1851 

218.3 

216.2 

$S.l 

1852 

209.6 

212.9 

1853 

230.9 

267.9 

1854 

278.3 

304.5 

1855 

275.1 

261.4 

13.6 

1856 

326.9 

314.6 

12.8 

1857 

362.9 

360.8 

2.0 

Totals, 

$2,053.7 

$2,116.4 
2,053.7 

$62.7 

$30.0 

Non.— The  totel  Tidue  of  the  import!  from  1789  to  Jane  80, 1866,  wm  t7,a97,6«l,::)6;  and 
the  total  Talne  of  the  ezporti  for  the  same  period,  86,497,M1,896 ;  ahowlng,  aoeorduig  to  the 
balaoee  theory,  that  In  uie  foreign  trade  we  hare  been  lonng  all  along. 

It  is  scarcely  necessary  to  observe  that  the  figures  in  the 
above  export  and  import  table  are  millions  and  decimal 
parts  of  millions.  The  figures  $151.8  are  to  be  understood 
as  signifying  $151,800,000. 

The  excess  of  imports  for  the  period  is  therefore  sixty- 
two  million  dollars ;  and  according  to  the  theory  of  the  bal- 
ance, that  is  the  full  measure  of  our  loss,  in  the  prosecution 
of  foreign  trade  for  the  past  eight  years.    We  would  be 


I'  II: 

1 1'! 


11'  hi; 


28 


HISGONCEPnONS  AB  TO  THE 


ftirther  told,  however,  that  our  trade  daring  the  past  three 
jean  had  been  QuccessAil,  the  balance  in  our  favor  being  no 
less  than  thirty  million  dollars. 

These  deductions,  we  need  scarcely  say,  are  not  borne  out 
by  facts.  With  respect  to  the  three  past  years,  we  are  more 
likely  to  have  lost  than  gained;  and  with  respect  to  the  five 
previous  years,  the  probability  is,  that  the  trade  left  us  a 
handsome  profit.  It  is  most  unlikely  that  a  large  increasing 
inward  and  outward  trade,  should  be  prosecuted  for  five 
years  without  it^  paying,  when  capital  was  abundant  and  so 
many  ways  presented  themselves  in  which  money  could  be 
made.  Then  in  these  three  years  in  which  our  imports  leave 
a  thirty  million  balance  to  be  drawn  against  abroad,  there  is 
reason  to  apprehend  that  the  trade  was  forced,  in  consequence 
of  the  stagnant  state  of  the  home  demand.  Eighteen  hun- 
dred and  fifty-five  and  subsequent  years  were,  as  we  have 
already  seen, years  of  high  priced  food,  and  as  a  consequence 
years  in  which  agricultural  products  absorbed  an  undue  pro- 
portion of  the  national  income,  and  left  little  for  investment 
in  manufactured  articles,  and  forced  these  articles  into  for- 
eign markets,  to  be  realized  promptly  at  whatever  they  would 
bring.  The  reverse,  therefore,  of  the  theory  in  reality  ob- 
tains, and  the  foreign  trade  of  1850  to  1854,  was  the  period 
in  which  advantage  was  likely  to  be  gained,  even  although 
our  imports  were  then  so  largely  in  excess. 

Foreign  trade,  like  domestic  trade,  has  for  its  object  an 
increase  of  those  utilities  which  all  desire,  and  how  any  in- 
crease could  be  made  if  we  were  t^  receive  really  less  than 
we  really  ^ve,  is  not  easy  to  understand.  If  we  send  a 
thousand  dollars'  worth  of  wheat  from  Illinois  to  Liverpool, 
and  it  nets  two  thousand  dollars,  the  thousand  dollars'  profit 
which  we  would  receive,  would  stand  against  us  if  the  theory 
of  the  balance  were  to  be  believed  ;  and  in  the  case  supposed 
the  nearer  we  approached  to  receiving  nothing  we  would  be 
the  better  off.  With  that  doctrine  it  would  be  also  difficult 
to  reconcile  the  utility  of  a  fishing  expedition  to  the  Southern 
ocean,  which  would  possibly  involve  the  receipt  of  one  or 
two  hundred  thousand  dollars*  worth  of  oil ;  or  a  trading 


V 


BALANOB  OF  TBAIM.  S 


29 


voyage  from  New  York  to  somewhere  else  and  back,  whioh; 
quintupled  the  amount  of  capital  originally  embarked.   Such 
a  theory  is  therefore  quite  absurd,  and  quite  unworthy  of  the 
intelligence  of  the  present  day. 

But  there  is  another  and  more  convincing  groimd  of  con^ 
demnation  of  this  flimsy  system,  whioh  has  so  long  deluded 
people,  and  whose  vestiges  and  spirit  are  still  living  in 
France  and  other  parts  of  Europe,  and  to  a  certain  extent 
among  ourselves.  That  is  the  utter  worthlessness  of  all 
statements  of  exported  or  imported  values.  Not  the  slight* 
est  reliability  can  be  placed  upon  them,  and  such  being  the 
case,  all  legislative  policy  so  grounded  must  be  erroneous ; 
and  all  efforts  in  that  kind  of  way  to  arrive  at  the  knowledge 
whether  we  are  making  an  accumulation  or  diminution  of 
those  utilities  known  as  wealth,  are  absurd.  To  make  this 
plain,  it  is  only  necessary  to  inquire  into  the  working  of  the 
system  of  foreign  trade.  A  firm  in  New  York,  a  firm  in 
Liverpool,  and  a  firm  in  Havre,  agree  to  engage  in  the 
American  trade ;  or  what  is  not  unusual,  a  speculative  indi- 
vidual opens  in  New  York  as  William  Jones  &  Co.,  in  Liver- 
pool as  Jones  &  Co.,  and  in  Havre  as  simple  William  Jones. 
To  start  this  triangular  kind  of  system,  in  a  responsible  looking 
sort  of  way,  the  New  York  firm  opens  a  credit  with  Duncan, 
Sherman  &  Co.,  for  the  firm  in  Liverpool ;  and  with  the  Bank 
of  the  Republic  for  the  firm  in  Havre.  The  New  York  ar- 
rangements are  then  in  trim.  Meanwhile  the  Liverpool  and 
Havre  firms  have  been  at  work,  credits  have  been  opened  in 
Liverpool  with  the  Royal  Bank  and  the  Bank  of  England, 
respectively,  in  favor  of  the  Havre  and  the  New  York  firms ; 
and  in  Havre  the  New  York  firm  is  accommodated  on  a  Jew, 
and  the  firm  in  Liverpool  on  the  Bank  of  France.  The  circle 
is  now  complete,  and  businesss  is  started  in  a  spirited  and 
imposing  way.  Now  mark  what  follows,  in  nine  oases  out  of 
every  ten.  These  credits  are  at  once  stretched  to  their  ut- 
most limit,  and  the  credit  of  each  firm  written  besides  upon 
as  many  bills  of  lading  as  can  be  sold.  The  priiK^iple  laid 
down  and  acted  on  is  this,  that  a  certain  amount  is  to  be 
shipped  and  drawn  for  every  month,  irrespective  of  the  state 


80 


mSOONOEPTIONS  AB  TO  THE 


nil ' 


!l>l| 


i     ! 


I  ! 


!     !i 


m\ 


of  the  market  at  either  end,  it  being  conceived  that  disturb* 
ances  in  the  profitable  relations  of  demand  and  supply  will 
be  only  temporary,  and  that  it  is  safer  to  calculate  on  a  gen* 
oral  ayerage  profit  for  the  year,  than  to  regulate  transactions 
by  quotations  at  the  time.  This  policy  accounts  abundantly 
for  shipments  and  Importations  being  made  in  the  worst  of 
times.  The  fact  is,  that  once  a  stupendous  business  system, 
such  as  those  in  the  foreign  trade,  is  set  agoing,  it  cannot  stop, 
unless  for  the  purpose  of  presenting  to  its  constituents  the 
alternatives  of  extension  or  liquidation.  Bills  are  maturing 
and  can  be  only  met  by  continued  operations,  no  matter 
although  dry  goods  are  unsaleable  in  New  York,  unless  by 
retail ;  and  although  cotton  presents  no  margin  in  Liverpool 
or  Havre,  and  has  a  declining  aspect.  These  considerations 
do  not  weigh  in  the  balance  when  the  questions  of  existence 
and  bankruptcy  become  involved;  and  the  losing  game  is 
boldly  played.  Now  we  .'would  ask,  what  light  can  possibly 
bo  thrown  upon  the  condition  6f  the  nation  by  an  examina- 
tion of  the  exports  and  imports  of  the  year,  when  such  prac- 
dcQS  obtain  ?  The  cotton  shipped  at  New  York  anrl  New 
Orleans,  and  entered  at  10  cents  a  pound,  may  not  be  worth 
that  on  reaching  Liverpool  or  Havre,  and  when  landed  there 
it  may  be  advanced  upon,  and  sold  ultimately  to  some  one 
who  perhaps  does  not  pay.  In  settling  up,  such  a  transac- 
tion would  be  expressed  as  nil  for  the  United  States,  although 
when  shipped  at  New  Orleans  it  was  written  down  at  a  mil- 
lion dollars.  Then  a  million  dollars'  worth  of  silks  may  be 
received  from  Havre,  and  to  cheat  the  revenue,  the  foreign 
invoices  are  adroitly  cooked,  and  the  import  table  does  not 
bear  the  fair  market  value  at  the  shipping  port.  But  these 
silks  are  sold,  and  as  sometimes  happens,  are  never  paid,  and 
as  a  consequence  the  house  in  Havre  is  not  credited  with  a 
dime,  and  the  import  value  is  never  paid. 

Such  is  the  modus  operandi  of  perhaps  half  the  foreign 
business  of  the  world ;  the  other  half  being  conducted  in 
what  is  called  a  legitimate  sort  of  way ;  and  seeing  how 
closely  and  how  intricately  one  country  interlaces  itself  with 
every  .other,  it  is  simply  "impossible  even  to  conjecture  how 


BALANOE  0      TBADI. 


8f 


we  stand  with  aaj  nation,  or  hoW  my  nation  stands  with  us.  < 
The  large  imports  we  have  been  receiving  lately,  and  the 
large  exports  we  have  made,  turned  out,  in  the  one  case 
daring  the  revulsion,  to  belong  in  part  to  France  and  Eng- 
land, and  in  the  other,  to  belong  to  us.  France  and  England; 
were  shipping  to  themselves  in  the  United  States,  and  the 
United  States  to  themselves  in  Liverpool  and  Havre;  thus 
demonstrating  the  futility  of  ever  attempting  to  unravel  the 
tangled  web,  and  to  render  official  trading  tables  of  little 
use. 

One  of  the  great  objects  of  the  theory  of  the  balance  of 
trade,  was  to  enable  a  nation  to  see  precisely  how  it  stood, 
so  that  what  was  considered  an  approach  to  an  unfavorable 
balance  could  be  promptly  checked ;  or  a  balance  raised,  and 
specie  drawn  to  such  extent  as  might  be  desired.  Wlien, 
therefore,  a  country  was  sending  in  more  stuff  than  it  was 
taking  off,  as  in  the  famous  instances  in  the  William  and 
Mary  time,  some  effective  steps  were  taken  in  the  form  of 
duties,  or  otherwise,  to  correct  the  evil,  and,  when  con< 
sidered  necessary,  bounties  were  freely  paid  on  exportation. 
Now,  so  far  as  controlling  the  movement  of  specie  from 
another  country  is  concerned,  that  depends  on  the  state  of 
the  exchange ;  in  other  words,  upon  the  extent  of  the  demands 
which  one  country  may  have  and  can  make  upon  another. 
If  the  demands  of  both  are  equal,  then  no  bullion  will  be 
passed ;  and  even  if  unequal,  no  bullion  will  be  passed  unless 
bullion  is  (he  cheapest  commodity  that  can  be  sent.  Suppose 
that  the  excess  of  the  value  of  the  bills  or  claims  drawn  by 
New  York  on  Liverpool  were  $1,000,000,  then  the  question 
for  Liverpool  is  to  find  the  means  of  discharging  the  differ- 
once  in  the  least  expensive  way.  If  commodities  costing 
$999,000,  but  worth  $1,000,000  in  New  York,  were  sent 
and  drawn  for,  then  the  difference  would  be  settled  satis- 
factorily; the  United  States  receiving '  what  they  were 
entitled  to,  and  England  reaping  the  benefit  of  such  natural 
or  acquired  advantages  as  it  possessed.  If,  however,  no 
merchandize  could  be  sent  with  the  reasonable  prospect  of 
realizing  cost,  then  a  specie  shipment  would  assuredly  be  the 


82 


msooiioBPnoifB  ab  to  tbb 


I  :i 


II    pill 

m 


I  r 


ilM 


best,  and  the  drafts  being  for  yalue,  in  fact,  in  the  case  of 
produce,  it  may  be  for  greater  Talue  than  the  purchase  price, 
no  disadvantage  wonld  be  entailed  on  Enr  land,  but  the 
United  Statias,  instead  of  reaping  increased  bonefit  from  the 
specie,  wonld,  in  reality,  only  have  the  bare  price  for  pro- 
duce which  would  have  been  paid  at  homo,  while,  if  merchan- 
dize had  been  received,  another  profit  would  have  been 
gained. 

Then  it  is  to  be  observed  that  representative  as  well  as 
real  capital  enters  into  the  exchanges  between  natious,  and 
is  of  sufficient  magnitude  to  destroy  the  theory  of  balances, 
even  if  its  principle  were  as  strong  as  confessedly  as  it  is 
weak.  The  stocks,  bonds,  mortgages  and  debentures  of  all 
unrepudiating  states  and  nations  are  saleable  on  the  London 
Stoek  Exchange,  and  when  sold  there,  constitute  as  effective 
demands  upon  the  floating  capital  of  England,  as  the  bread- 
stuff and  cotton  bills, of  New  York  and  New  Orleans.  It  is 
worthy  of  note,  also,  that  these  securities  can  be  returned 
upon  their  makers  without  regard  to  what  England  may  be 
really  owing  for  grain  or  cotton,  and  retake  all  the  gold  that 
has  been  acquired. 

It  is,  also,  a  well  known  fact  that  the  operations  or  wants 
of  the  United  States  in  the  other  hemisphere,  necessitate  at 
all  times  the  opening  of  credits  with  London  bankers,  and 
considering  the  real  or  possible  extent  of  such  transactions, 
any  trimming  of  the  imports,  with  the  view  of  keeping  the 
exchanges  in  our  exclusive  favor,  would  he  liable,  at  any 
moment,  to  be  overturned  and  set  aside.  Not  a  single  straw 
returns  from  the  outlays  of  the  government,  in  its  court  and 
consular  appointments,  or  the  movements  of  its  ships  of  war ; 
and  the  expenses  of  one  year  may  be  doubled  in  another. 

The  theory  of  the  balance  of  trade  is  erroneous,  therefore, 
and  in  no  sense  whatever  is  it  of  any  use.  A  nation,  like  an 
individual,  must  get  more  than  it  gives,  import  more  than  it 
exports,  or  trade  will  be  a  losing  game.  Then,  as  to  making 
international  payments,  it  is  unnecessary  at  any  time  to  open 
up  the  national  ledger.  The  exchanges  are  not  regulated  on 
theoretical  grounds,  but  by  the  matter  of  fact  demand  and 


INFLUINOB  OF  BANKIMO. 


88 


supply  of  bills.  If  bills  are  plentifal  on  Baro|te,  then  th^ 
exchange  is  low  aid  in  &vor  of  the  United  States,  and  vice 
verta.  These  bills  may  not  be  drawn  against  what  it  known 
as  trade,  but  against  bonds  and  stocics  of  the  United  States 
sold  in  England,  or  against  legacies  and  payments  due  to 
parties  here.  Bills  on  the  United  States  may,  on  the  other 
hand,  be  drawn  against  the  disbursemMits  of  the  American 
government,  or  against  the  disbursements  of  American  citi- 
zens in  any  part  of  Europe.  The  balance  of  transaetions 
has,  therefore,  no  concern  with  the  rate  of  the  exchange. 

^  4.  Another  misconception,  closely  identified  with  the  first, 
which  we  have  named,  is  that  which  relates  4o  banking.  It  is 
v6tj  generally  supposed  that  prosperity  and  adversity  are  con- 
tingent on  the  action  of  the  bunks ;  and  that  a  real  specie  basis, 
and  large  unemployed  reserves,  are  only  needed  to  prevent 
difficulty  and  disaster  in  the  future.  Now  when  it  is  consid- 
ered that  the  bo  iking  capital  and  deposits  of  the  nation  form 
but  a  fractional  part  of  the  whole  national  capital,  and  be- 
long, in  the  deposits,  to  the  mass,  and  not  to  the  bankers, 
these  opinions  must  be  largely  modified.  According  to  the 
report  of  the  Secretary  of  the  Treasury,  the  paid-in  capital 
of  the  whole  fourteen  hundred  banks,  in  the  United  States, 
amounts  to  only  $870,000,000 ;  a  sum  a  few  millions  short 
of  what  the  United  States  paid  for  wheat  in  1857;  and 
$125,000,000  less  than  would  have  been  paid,  if  wheat,  in 
1857,  had  been  the  same  price  as  it  was  in  1855.  The  real 
iafluence  of  banking  ?s  therefore  trifling ;  its  actual  measured 
value  being  no  greater  than  a  crop  of  wheat,  valued  at  a  fair 
average  of  prices  ruling  in  years  of  dearth  and  plenty. 
How  then  can  it  possibly  be  so  omnipotent  as  is  generally 
believed  ?  In  times  of  stringency,  we  admit,  that  traders  do 
not  have  the  same  line  of  discount,  and  as  a  consequence,  sus- 
pend payments ;  and  that  these  suspensions  constitute  a  crisis, 
and  so  on ;  but  we  deny  that  stringency  is  brought  about  at 
the  mere  will  and  pleasure  of  the  banks.  Bankers*,  as  a  rule, 
do  not  use  their  means,  but  lend  their  means  to  others,  and  if 
these  means  are  used  unproductively,  and  are  not  in  the  mean- 
8 


84 


MISCONCEPTIONS  AS  TO  THE 


Ml' 


time  replaced  by  the  income  of  the  country,  then  means  or  float- 
ing capital  is  scarce ;  and  i)eing  scarce,  the  sums  on  deposit  in 
bankers'  bands  are  reduced,  and  a  positiye  Inability  to  lend  to 
the  prefvious  Extent,  is  the  stem  truth  told  the  banker.  Who 
is  responsible  ?  Not  tlte  banker  surely,  as  he  has  not  laid  out 
or  absorbed  the  means :  but  the  people,  or  the  seasons.  Let  a 
banker  curtail  his  discounts,  when  times  are  good,  and  what 
he  withholds  will  be  taken  from  him  in  deposits  ;  and  let  him 
be  indulgent,  when  the  income  of  the  country  has  been  ab- 
sorbed or  wasted,  and  all  his  treasure  will  only  form  a  mouth- 
ful. This  principle  admits  of  easy  explanation.  Bankers, 
though  the  principal  are  not  the  exclusive  lenders  of  monied 
capital^  but  private  parties  having  a  surplus,  in  other  words, 
having  deposits  at  their  bankers,  compete  to  a  greater  or 
lesser  extent,  in  making  loans,  according  to  the  circumstances 
of  the  time.  Supposing  that  unemployed  capital  were  abun- 
dant in  the  country,  and  bankers  resolved  to  reduce  their 
loans.  This  course  would  render  them  careless  about  increas- 
ing their  deposit  stock ;  and  accordingly  a  very  low  rate  of 
interest  would  be  allowed  on  deposits  put  into  their  hands. 
Depositors  would  then  look  about  for  a  higher  rate  of  inter- 
est than  that  allowed  by  bankers ;  and  would  find  that,  in  the 
bills  thrown  out  by  bankers  in  the  contracting  process.  The 
contraction  or  stringency  would  be  therefore  nominal,  and 
borne  only  by  the  weekly  statements  of  the  banks ;  and  in 
reality  would  not  exist  out  of  doors.  Every  one  with  good 
security  to  ofier,  would  be  supplied  to  the  same  extent  pre- 
cisely as  if  bankers  had  made  no  contraction  of  their  loans. 
In  this  way  the  whole  discounting  business  of  the  country 
might  pass  into  other  hands ;  but  bankers  would  find  that  the 
contracting  process  would  not  do,  and  very  speedily  relax 
their  hands,  and  take  the  leading  part  again  in  this  depart- 
ment of  their  trade.  So  much,  therefore,  for  the  talked-of 
power  of  bankers  to  crush  the  country,  when  the  humor  takes 
them.  A  more  egregious  fallacy  was  never  entertained.  On 
the  other  hand,  supposing  that  the  floating  capital  of  the 
country  had  been  absorbed  freely,  find  there  was  an  active 
inquiry  for  that  portion  whioh  bankers  stiU  possessed,  what, 


INFLUENCE  OF  BANKINO. 


35 


we  would  ask,  conld  bankers  do  to  meet  the  crisis  ¥  Sapposh 
ing  that  they  did  not  advance  their  rates,  in  other  words,  did 
not  contract  their  loans,  what  follows  ?  Every  weekly  state- 
ment becomes  more  gloomy  than  another,  as  the  amount  of 
treasure  becomes  diminished ;  and  depositors  taking  fright, 
make  a  run,  and  suspension  is  promptly  brought  about.  But 
supposing  that  rates  were  advanced,  and  the  "  screw''  adopted, 
the  practical  issue  would  still  be  the  same,  and  bankers  as 
powerless  to  fill  the  vacuum.  The  country  would  be  in  the 
position  of  a  man  called  upon  to  pay  a  doUar  who  could 
/  raise  fifty  cents  only,  and  the  consequences  would  be  the 
same.  His  note  of  hand  would  be  worthless  for  the  present; 
and  so  would  be  the  promises  of  a  Wall  street  banking 
house,  to  pay,  in  the  case  supposed.  If  this  were  not  so, 
then  why  any  crisis  or  revulsion,  or  any  clogging  of  commer- 
cial wheels  at  all  ? 

But  not  only  is  a  banking  system  necessarily  passive  in  its 
operations,  and  of  less  account  than  a  crop  of  wheat ;  but 
contrasted  with  the  aggregate  value  of  the  real  and  personal 
estate  of  the  country,  its  amount,  as  we  have  already  said,  is 
fractional  and  trifling.  Prom  the  recent  reports  of  the  Sec- 
retary of  the  Treasury  we  take  the  following  items : 

June,  1856,  Real  and  personal  estate,    $11,000,000,000 

Jan.,  1857,  Total  capital  of  Banks,             370,000,000 

Jan.,  1857,  Total  deposits  of  Banks,           230,000,000 

Jan.,  1857,  Total  circulation  of  Banks,       214,000,000 

Jan.,  1857,  Total  loans  and  discounts,          684,000,000 

Jan.,  1857,  Total  specie  of  Banks,               58,000,000 

Here  then,  we  have  the  real  and  personal  property  of  the 
United  States  put  in  at  eleven  thousand  millions,  and  the 
circulation  of  the  banks  at  two  himdredand  fourteen  mil- 
lions ;  a  sixtieth  part  of  the  former  sum.  Now  considering 
that  real  and  personal  property  are  convertible  into  other 
things,  and  into  gold,  the  presumption  is,  that  no  greater 
amount  of  circulation  than  what  we  have  named  is  really 
wanted,  as  the  least  inconvenience  would  have  called  into 
existence  a  further  sum.  That  is  all  that  is  really  needed, 
and  all  that  can  be  forced  upon  the  public,  even  although  six 


86 


msooNOEPnoNS  as  to  the 


li 


I'i! 


U  U  il  f  : 


ill'!;. 


liiiili 


hundred  and  eighty-four  millions,  in  the  form  of  loans  and 
discounts,  have  been  paid  away.    Was  ever  popular  error 
more  conclusively  exposed  ?    The  proportion  of  the  circulat- 
ing medium  to  the  real  and  personal  property  of  the  country, 
is  a  sixtieth  only ;  and  that,  at  a  period  of  undue  inflation. 
That  amount  sufficed  to  do  the  business  of  the  country ;  and 
a  larger  sum  would  have  done  it,  not  a  whit  the  better. 
What  difference  is  there  in  the  position  of  the  business  of 
two  New  York  bankers,  one  of  whom  avails  himself  of  the 
clearing  house,  giving  or  receiving  the  trifling  balances  of 
the  day,  while  the  other  collects  and  distributes,  each  and 
every  item  in  its  individual  and  aggregate  of  notes  or  coin  ? 
and  what  difference,  if  the  circulation  of  the  United  States 
were  reduced  a  half?    What  difference,  in  point  of  fact,  if, 
coin  and  notes  were  abrogated,  and  the  clearing  house, 
recording  and  offset  system,  brought  down  to  the  lesser 
transactions  of  daily  life  ?    Start  a  bank  in  Chicago  with  a 
capital  of  a  million  dollars.    The  proprietors  do  not  pay 
their  shares  in  gold  or  silver,  or  in  anything  possessed  of 
intrinsic  value ;  but  in  the  notes  of  other  banks.    The  capital 
of  the  bank  consists,  therefore,  of  claims  on  others;  and  ;,he 
capital  of  these  others,  consists,  it  may  be,  of  claims  on  New 
York;  demonstrating  at  every  turn  that  money  is  not  the 
foundation  nor  the  prop  of  the  business  system,  but  a  mere 
auxiliary  or  comer  stone. 

It  is  easy  to  account  satisfactorily  for  the  confused  and 
crude  notions  that  prevail  generally  on  banking  subjects. 
Money  is  the  great  object  of  desire  to  young  and  old,  and  the 
clear,  intelligible  way  in  which  it  is  acquired,  and  afterwards 
exchanged  for  something  else,  has  made  inquiry  a  work  of 
supererogation;  Every  one  saw  the  whole  matter  at  a  glance, 
and  respectfully  declined  to  be  enlightened,  or  to  seek  further 
information.  "  Give  us  money,"  it  was  said,  "  and  we  will 
get  the  rest;"  and  who  has  not  heard  the  proverb  that 
"  money  make?  thQ  mare  to  go."  At  one  period  it  was 
believed  that  there  was  a  certain  amount  of  money  in  the 
world,  and  that  trade  was  neither  more  nor  less  than  a  scram- 
ble for  it ;  and  that  what  one  nation  gained,  another  nation 


INFLIUNCB  OF  BAMEINO. 


87 


scram- 
nation 


lost.  The  discovery  of  the  California  and  Australia  mines] 
and  the  paper  money  substitute,  rather  injured  that  theory, 
and  thinned  the  ranks  of  those  who  entertained  it ;  but  the 
benefit  and  felicity  of  lots  of  money  was  someUiliig  whiqh 
only  fools  or  madmen  could  dispute.  What  but  money  ptit 
the  laborer  to  work,  and  found  him  in  the  necessaries  and 
decencies  of  life  ?  and  what  did  the  trader  and  the  merchant 
scheme  and  strive  for?  Money,  therefore,  was  the  great 
object  of  desire,  and  tens  of  thousands  at  the  present  time, 
cannot  hear  of  specie  shipments  to  other  countries,  withoM 
lamenting  the  ignorance  and  delusion  that  prevent  the  gov- 
ernment from  forcibly  retaining  every  dollar  within  the 
country,  and  straining  every  nerve  for  the  indefinite  augmen- 
tation of  the  stock  of  gdd  and  silver,  and  the  manufacture 
of  paper  bills. 

This,  ho^^ever,  has  not  been  the  only  form  of  error  on  the 
subject.  The  fallacy  of  an  indefinite  multiplication  of  paper 
money  has  given  way  only  to  that  of  a  multiplication  on  a 
"specie  basis."  Give  us  currency, it  is  said,  but  let  it  be 
secured.  When  Illinois  is  overflowing  with  wheat  and  corn, . 
and  New  York  and  Liverpool  are  scantily  supplied,  "let 
notes  issue  against  the  crop,"  and  each  and  all  participate 
without  let  or  hindrance  in  its  movement  to  the  seaboard. 
Very  little  reflection  is  needed  to  show  the  impracticability 
of  such  a  scheme.  The  farmers  cannot  issue  notes  without 
,  becoming  bankers ;  and  bankers  could  not  issue  notes  without 
the  wheat.  Antecedently,  therefore,  to  the  issue  of  the  notes, 
the  wheat  would  be  moved,  and  the  notes  would  not  be 
needed.  But  supposing  this  difficulty  overcome,  and  the 
wheat  crop  of  Illinois  represented  in  paper  money,  that  its 
movement  might  be  secured.  What  then  ?  Is  the  money  to 
be  scattered  broadcast  without  value  being  received  ?  If  so, 
then  the  money  costing  nothing,  will  be  possessed  of  little 
value ;  and  if  to  be  issued  like  other  paper  money,  wherein 
is  the  advantage  to  be  derived  ?  As  things  are,  wheat  or  any 
other  produce  article,  can  be  purchased  on  its  own  security, 
for  a  given  period,  and  currency  obtained  to  make  the  pay- 
ment.   The  hue  and  cry  for  currency,  that  produce  may  be 


38 


MISOONOEPnONS  AS  TO  THE 


I 


IH' 


moved,  is  a  mistake,  therefore,  and  something  else  is  in 
reality  required ;  and  tiiat  somethii^  else  is  to  be  found  in  an 
improved  feeling  in  the  future,  and  more  confidence  between 
man  and  man.  A  specie  basis,  instead  of  a  wheat  one,  would 
not  mend  the  matter,  fi»  it  is  not  currency  bnt  confidence 
that  is  required.  Supposing  that  A.  buys  &om  B.  one  thou- 
sand  bushels  of  wheat,  and  has  to  pay  B.  one  thousand  dol> 
lars.  B.  possibly  draws  the  money  from  banker  0.,  and  on 
A.  receiving  it,  he  forthwith  makes  a  deposit  with  banker  D. 
Banker  0.  has  so  much  less  funds  in  hand  thati  he  had,  and 
banker  D:  so- much  more ;  but  another  business  operation,  by 
other  parties,  may  retake  the  same  money  from  D.  and  put  it 
temporarily  into  wheat  again,  and  then  replace  it  into  the 
hands  of  0.  Money  therefore  performs  a  ceaseless  round  of 
services ;  and  it  is  a  mistake  to  fancy  that  one  sum  can  only 
discharge  a  single  function.  The  fact  rather  is,  that  the 
identical  circulating  medium  of  the  time,  if  worth  preserving, 
and  incapable  of  being  destroyed  or  worn,  by  repeated  hand- 
ling, might  operate  the  business  of  the  countnr,  without  the 
least  inconvenience,  for  the  next  hundred  years.  -  To  be  sure, 
the  circulation  in  1858  was  almost  double  what  it  was  twenty 
years  ago ;  but  nothing  has  yet  been  done  in  the  way  of  clear- 
ing western  issues.  These,  instead  of  being  deficient  are 
largely  in  excess ;  and  no  better  services  could  be  rendered 
than  to  cut  them  down. 

What  is  really  practicable,  on  a  specie  basis,  is  the  protec- 
tion of  the  paper  money  which  the  public  have  in  hand.  That 
is  the  limit,  and  that  limit  being  transgressed,  the  miscon^ 
ception  of  which  we  speak  occurs.  In  a  community  or  coun- 
try where  the  practice  of  daily^  or  even  weekly,  clearances 
obtains,  just  as  in  a  community  or  country  where  such  a  prac- 
tice is  unknown,  there  is  an  almost  fixed  sum,  always  out, 
either  in  transitu,  from  the  issuing  to  the  clearing  point,  or 
kept  in  perpetual  motion,  as  in  Illinois,  making  few  and  far 
between  returns  to  the  place  whence  it  came,  and  that  sum  it 
is  only  needful  to  secure.  To  go  beyond  that  point  is  unne- 
cessary and  absurd,  as  what  a  bank  issues  in  excess,  is  either 
held  by  other  banks  or  returned ;  and  no  puUic  risk  is  run. 


INFLUERCB  OF  BANKING. 


30 


Betorning  to  oar  table,  at  page  35,  we  find  the  fioUowing  a^ 
the  circulation,  and  protecting  specie  of  the  banJcs  in  the 
United  states  in  January,  1857 : 

$214,000,000.  $58,000,000.      i 

A  large  accomnlation  of  specie  is  therefore  needed  to  bring 
up  the  circulation  to  a  specie  standard ;  and  until  that  is 
done  we  may  well  spare  ourselves  anxiety  as  to  keeping  out 
a  still  greater  sum.  Our  next  care  should  rather  be  to  devise 
means  by  which  deposits  should  also  \^ecome  secured.  These 
cover  a  larger  sum  than  the  circulation,  and  if  dissipated  by 
bankers,  or  recovered  only  after  a  tedious  process  of  liquida- 
tion, the  injury  to  society  is  not  less  severa  than  that  of 
broken  bills.  Stocks  and  bonds  are  good  unquestionably  to 
the  full  extent  that  they  go,  but  time  and  again  we  have  had 
experience  of  the  fact,  that  securities  of  every  kind  are  most 
inconvertible  when  most  required,  and  that  there  is  no  limit 
to  the  depreciation  which  they  may  attain.  A  currency  based 
on  these  is  treacherous  and  unsafe,  and  cannot  be  remedied  a 
single  hour  too  soon.  It  is  to  tiiis  imperfection  of  western 
currency,  that  the  derangement  of  the  internal  exchanges 
is  clearly  owing,  and  this  circumstance  we  shall  have  to  con- 
sider by  and  by  in  its  pr(^r  place. 

It  follows,  therefore,  that  the  influence  of  banking  is  very 
trifling,  that  it  is  in  fact  not  an  active  but  a  passive  ageney, 
and  its  real  benefit  consists  in  gathering  together  and  lending 
out  such  unemployed  monied  capital  as  a  people  have.  When 
that  unemployed  capital  is  abundant,  bankers'  hands  are  full, 
and  loans  are  made  without  stint  or  measure;  but  when  a 
bad  season,'  or  excessive  investments  in  unproductive  objects, 
has  absorbed  the  stock  unduly,  then  the  little  left  is  given  out 
grudgingly  and  on  stringent  terms.  The  banker,  however,  is 
not  to  Hame.  He  is  not  a  manufacturer  of  monied  capital, 
but  a  mere  receiver  and  distributor  of  what' may  be  agoing. 
True,  he  may  issue  an  unlimited  amount  of  notes ;  but  it  is  on 
the  presumption  that  these  notes  are  representative  of  wealth, 
which  is  immediately  convertible  into  coin.  The  wealth, 
therefore,  existed  before  the  notes,  and  has  not  been  created 


M 


OENBBAL  APPUOATION. 


by  them ;  and  Dotos  based  on  nothing,  can  be  nothing  else 
than  a  fraud.  They  may  set  industry  in  motion,  and  in  their 
own  depreciatiofa  increase  the  value  o!f  other  things,  but  when 
the  day  of  discredit  and  reckoning  comes,  the  ha|dess  holder 
finds  that  he  has  labored  for  that  which  is  not  bread,  and  for 
that  which  satisfieth  not.  Further,  we  have  found  that  the 
proportion  of  banking  capital  to  other  wealth  is  fractional 
and  trifling  only ;  and  that  by  the  agency  of  the  clearing  sys- 
tem the  circulation  of  the  country  may  be  much  reduced,  and 
need  not  want  augmentation  for  another  hundred  years. 


1 


§  5.  But  it  may  be  asked,  ^hat  have  these  things  to  do  with 
international  trade  ?  What  has  our  local  or  national  banking 
system  to  do  with  it ;  or  the  price  of  agricultural  produce ; 
or  the  balance  of  trade ;  or  the  misconceptions  as  to  wealth  ? 
These  questions,  thereforei„we  must  answer  before  proceeding 
with  the  subject  matter. 

With  regard  to  what  constitutes  wealth  it  must  be  mani- 
fest that  if  there  is  any  misoonception  on  the  subject — ^if  it  is 
conceived  that  an  accumulation  of  the  precious  metals  is  the 
great  aim  and  end  of  international  and  domestic  trade,  and 
that  the  imported  produce  and  products  of  foreign  countries 
are  a  public  loss,  then  the  first  thing  to  be  done  is  to  disabuse 
the  public  mind  on  the  subject,  and  to  show  that  real  wealth 
consists  not  in  gold  and  silver,  but  in  the  abundance  of  those 
things  that  are  useful  and  agreeable  to  man,  without  respect 
to  the  source  from  which  they  are  derived.  If  the  greut  end 
of  trade  is  misconceived,  a  vicious  practice  will  be  cherished, 
and  injury  unwittingly  inflicted  upon  ourselves.  We  will 
insist  upon  producing  those  things  which  we  coidd  purchase 
cheaper  elsewhere ;  and  to  that  extent  withdraw  production 
from  those  commodities  in  which  our  advantage  is  the  most. 
We  will  seek  gold,  when  seeking  other  things  would  secure 
to  us  those  advantages  which  result  from  exchange  with 
foreign  nations,  and  which  returns  in  gold  rarely  yield. 

The  price  of  agricultural  produce  has  a  most  intimate  con- 
nection with  prosperity  or  depression,  not  only  in  domestic 
but  in  foreign  trade.    When  prices  are  low,  capital  is  abun- 


V 


QENB&AL  APPUOATION. 


41 


dant,  the  consamptive  demand  brisk,  and  trade  good ;  and 
when  prices  are  high,  capital  is  scarce,  the  consumptive  de- 
mand heavy,  and  trade  dull.  Then  when  the  home  demand 
fails,  we  have  the  necessary  result  of  forced  sales,  ciOnsigniiM; 
in  excess  to  foreign  markets,  aid  sympathetic  derangement  In 
foreign  countries.  Gonsidciring  then  the  ever-recurring  pe- 
riods of  deficient  harvests,  and  their  invariable  sequence,  an 
important  disturbing  influence  is  brought  to  light  in  foreign 
and  domestic  trade  which  should  not  be  overlooked.  The 
price  of  wheat  should  be  the  barometer  of  the  business  man, 
directing  him  when  to  crowd  on  sail  and  when  to  make  things 
snug  to  face  the  storm ;  and  it  is  full  time  that  a  generous, 
intelligent  sympathy  were  extended  to  the  hapless  trader  who 
is  borne  down  by  circmnstances  over  which  he  can  exercise  no 
control.  If  the  capital  or  income  of  the  conntiy  is  a  given 
annual  sum,  and  unexpectedly  an  undue  proportion  is  absorbed 
in  buying  bread,  who  ie  to  blame  for  the  ccmsequences  that 
follow  ?  If  the  mass,  from  necessity,  diminish  their  expendi- 
ture for  domestic  or  imported  articles,  and  the  manufacturer 
or  holder  of  these  becomes  embarrassed,  in  consequence  of 
the  absence  of  that  demand  which  he  anticipated,  is  it  more 
reasonable  to  charge  him  or  the  season  with  the  irregularity 
and  the  loss  that  is  sustained  ?  Is  he,  when  the  first  manifes- 
tation of  collapse  occurs,  to  go  into  the  bankrupt  court,  and 
not  venture  upon  a  single  sacrifice,  in  the  faith  and  hope  that 
things  will  speedily  improve,  and  any  little  breach  in  capital 
be  repaired  ?  and  is  he,  in  the  adoption  of  either  of  these 
alternatives,  to  be  treated  equally  with  distrust  and  blame  ? 
These  are  questions  of  commanding  interest  to  the  business 
public  at  the  present  time,  and  when  traced  back  to  remote 
issues,  give  the  cue  to  those  revulsions  with  which  everything 
in  turn  has  been  blamed. 

The  theory  of  the  balance  of  trade  has  figured  so  conspic- 
uously in  every  dissertation  on  foreign  trade,  and  still  has 
too  strong  a  hold  upon  the  mass  to  remain  unnoticed.  We 
might  show  the  advantage  of  this  and  that  to  a  country ;  but 
a  man  prejudiced  in  favor  of  looking  at  things  in  the  aggre- 
gate, even  although  the  aggregations  are  misleading  and  in- 


4t 


OENBBAL  AFPUOATION. 


correct,  would  not  be  satisfied.  We  might  tell  him  that  it 
was  better  to  grow  wheat  and  cotton,  and  to  buy  the  prodaots 
of  Europe  with  them,  than  to  manufaotore  these  things  for 
onrselves ;  bnt  demonstration  would  be  lost,  if  it  were  be- 
lieved that  he  had  to  account  for  every  dollar's  worth  that  may 
be  borne  upon  the  customs  imports.  It  was  therefore  neces* 
sary  to  show  that  a  nation  like  an  individual  is  enriched  by 
what  it  gets,  and  impoverished  by  what  it  gives,  no  matter 
whether  the  amodnt  is  great  or  small ;  and  that  since  the 
foundation  of  Ibe  government,  the  imports  of  the  country 
exceed  the  exports.  Wherein  then  would  consist  the  motive 
of  foreign  trade,  if,  after  reclaiming  miUions,  of  acres  of  pro- 
ductive soil,  and  reaping  and  scattering  their  golden  crops 
abroad  upon  the  world,  we  were  still  poorer  than  when  we 
made  the  start  ? 

Finally)  with  respect  tol  banking,  it  is  necessary  to  show 
that  it  is  a  passive  and  not  an  active  organism.  In  domestic 
trade  the  banker  offers  inducement  to  the  unemployed  oa()ital 
of  the  country,  being  gathered  into  his  hands,  that  he  may 
lend  it  out,  and  derive  a  profit ;  and  it  is  so  also  in  foreign 
trade.  It  is  with  the  means  of  others  that  he  almost  wholly 
deals,  and  these  means  have  to  be  surrendered,  whether  capi- 
tal is  scarce  or  pientifiil,  or  times  good  or  bad,  and  whether 
these  means  were  deposited  in  bills  on  Ixmdon  or  in  domestic 
currency. 


CHAPTER  II. 


OENEKAL  PBINOIPLES  OF  THEOBT  AND  PBACTIGE. 

Thb  **  theory  of  international  trade,"  is  to  be  understood 
as  embracing  the  abetract  specalations  incidental  to  the  snb- 
ject matter;  and  the  "practice  of  international  trade,"  as 
embracing  die  praotioal  details  of  business  operations.  The 
general  principles  of  the  theory  and  practice  of  international 
trade  comprehend,  tiierefore,  the  abstract  reasonings  of  the 
**  theorist,"  and  the  deductions  and  api^ioations  of  the 
"  practical"  man,  in  the  matter  of  the  trade  of  the  United 
States  and  England,  and  in  the  matter  of  the  trade  <^  the 
United  States  and  Oanada.  Special  considerations  are 
reserved  for  the  succeeding  chapters^  and  nothing  more  is 
aimed  at  here  than  a  few  informal  illustrations  of  principles 
and  practice  in  their  mors  general  form. 

Foreign  and  domestic  trade  may  be  considered  in  two  dif- 
ferent points  of  view  :  the  state  of  barter,  and  the  state  in 
which  money  is  employed. 

It  may  appear  unnecessary  to  treat  of  trade  in  a  state  of 
barter,  as  it  may  be  said  we  are  not  likely  to  relapse  into 
that  primitive  state  of  things ;  but,  it  is  to  be  observed,  that 
as  no  misapprehension  can  possibly  enter  into  transactions  in 
which  mere  commodities  are  employed,  it  is  essential  to  mark 
the  points  of  difference,  when  money  is  used  as  a  medium  of 
exchange,  that  we  may  better  understand  the  utility  and  the 
function  of  the  latter. 

Supposing,  then,  that  the  present  money  system  were 
annulled,  and  all  commodities  trucked  against  each  other, 
how  would  domestic  and  international  trade  be  governed  ? 
Cotton  and  breadstuffs  would  continue  to  be  shipped  to 
Europe,  as  Europe  would  want  them  just  as  much  as  ever, 
and  we  would  still  seek  and  get  the  products  of  the  other 


44 


GENERAL   PRINCIPLES 


hemisphere.  The  fanner  in  the  interior  of  Illinois  would 
send  his  wheat  and  com  to  Chicago ;  the  Chicago  merchant 
make  his  consigtimentsi  to  New  York ;  and  the  New  York  mer- 
chant make  his  consignments  to  his  Mends  in  Liverpool ; 
each  receiving  those  eqtdyalents  which  he  desired.  If  Chi- 
cago wanted  more  from  New  York  than  New  York  wanted 
from  Chicago,  then  Chicago  produce  would  require  to  be 
given  at  a  lower  value,  that  additional  demand  might  be 
excited  in  New  York ;  and  if  we  wanted  more  firom  foreign 
nations  than  foreign  nations  were  disposed  to  take  from  us, 
then,  in  the  same,  waj,  our  produce  would  require  to  be 
lowered  in  value,  that  the  demand  abroad  might  be  inore.  sed. 
If,  on  the  other  hand,  Chicago  wanted  less  from  New  York 
than  New  York  wanted  from  Chicago,  theh  New  York 
would  offer  more  inducement  that  its  wants  might  be  sup- 
plied ;  nd  if  we  wante^  less  from  foreign  nations  than 
foreign  nations  were  disposed  to  take  froii^.  us,  then  foreign 
nations  would  offer  such  inducements  as  would  be  required. 

Suppose  a  farmer  possessed  of  so  much  wheat,  and  a 
speculator  possessed  of  so  much  land,  agreed  on  one  occasion 
to  exchange  so  much  wheat  and  land,  and  afterwards  the 
farmer  wanted  a  further  transaction,  about  which  the  land 
speculator  was  indifferent  and  careless.  The  farmer  has  then 
to  offer  better  terms  to  the  land  speculator  than  in  the  pre- 
vious case,  as  otherwise  he  cannot  exchange  his  wheat,  and 
by  offering  favorable  terms  he  may  dispose  of  all  the  wheat 
he  has.  The  indifference  of  the  land  speculator  at  one  value 
vanishes  the  moment  a  more  favorable  one  is  named,  and  the 
principle  is  of  universal  application.  We  may  want  more 
of  European  stuffs  than  Europe  wants  of  our  staple  produce, 
and  that  greater  quantity  and  value  is  only  to  be  had  and 
balanced  by  the  lowering  of  the  value  of  what  we  have  to 
offer. 

Such,  in  its  simplest  form,  is  the  barter  system ;  and  in 
what  does  the  money  system  differ  ? 

Under  the  money  system,  trade  is  still  the  exchange  of 
one  commodity  for  another,  and  if  the  values  are  alike,  the 
settlements  are  made  without  money  being  interposed;    If, 


OF  THIOBT  AND  PRACnCV. 


46 


and  in 

inge  of 
ke,  the 
^d.    If, 


for  instance,  the  sums  due  to  and  from  Ohicago  in  New  fork,' 
or  due  to  and  from  New  York  in  Liverpool,  are  the  same,  the 
mere  offset  practice  of  the  clearing  house  obtains,  and  the 
claims  are  canoelltkl  without  a  single  piece  of  coin  being 
used.  When  such  a  state  of  things  occurs,  and  not  unfre- 
qnently  it  does,'  the  moTcment  of  coin,  between  distant 
places,  is  unnecessary,  and  would  entail  loss  either  of  a 
positive  or  comparative  kind.  The  exchange  between 
distant  places  would  then  be  said  to  be  at  par ;  and,  in  such 
a  case,  there  is  no  difference  between  the  money  and  tl^e 
barter  system. 

Suppose,  however,  that  Ohicago,  under  the  money  system, 
began  to  buy  more  in  New  York  than  it  sold,  and  that  New 
York  began  to  buy  more  in  Liverpool  than  it  sold,  what  new 
phenomena  would  be  brought  about  ?    At  once  the  difference 
would  be  paid  in  coin;   and  so  long  as  the  unfavorable 
balance  of  trade  was  reproduced,  the  specie  drain  would  be 
continued.    This,  then,  is  the  point  at  which  the  barter  and 
the  money  systems  part.    Un^er  the  barter  system, Ve  could 
not  have  sent  money  from  Chicago  to  New  York,  nor  from 
New  York  to  Liverpool,  the  presumption  being  that  money 
was  unknown ;  but,  to  pay  for  the  increased  purchases,  Chi- 
cago and  New  York  would  have  given  their  produce  at  a 
cheaper  rate.    A  satisfactory  adjustment  then  would  have 
taken  place.    But,  in  the  case  supposed,  the  difference  has 
been  paid  in  money,  and  the  question  is,  what  new  effect  pre- 
sents itself  in  Chicago  and  in  New  York,  both  of  which  sur- 
render so  much  coin ;  and  in  Liverpool  which  receives  an 
augmentation  ?    The  new  effect  in  Chicago  and  New  York, 
presuming,  as  a  matter  of  course,  that  the  excess  of  imports 
had  not  been  temporary  but  continued,  would  be  this :  the 
circulation  or  its  basis  would  be  diminished,  and  money,  as 
compared  with  other  things,  being  relatively  more  limited  in 
supply  than  it  Vas  before,  other  commodities  would  decline 
in  value,  and,  by  increased  exports,  the  equilibrium  would  be 
restored.    In  Liverpool,  on  the  other  hand,  the  influx  of 
specie  increasing  the  supply  of  the  precious  metals  relatively 
to  other  things,  money  would  be  cheaper  and  other  things 


46 


onnaAL  pbimoiplb 


r.r'i 


i]«:  i 


dearer;  and  the  adyanoed  prioee  limiting  the  exports  to 
New  York  and  Ghioago,  the  balance  of  trade  would  rale  the 
other  way,  and  gold  be  tranimitted  to  the  United  States.  K 
Chicago  and  New  York  had  been  substituted  for  Liverpool  as 
the  gold  receiving  pprts,  and  Liverpool  pat  into  the  place  of 
these  cities,  the  principle  exemplified  would  have  been  the 
same.  The  specie,  from  its  influx  into  Chicago  and  New 
York,  would  have  raised  the  price  of  other  things,  and,  as  in 
the  case  of  Liverpool,  speedUy  operated  on  the  exchange  by 
diminishing  the  amount  of  exports.  i 

There  is,  then,  no  practical  difference  in  the  operation  of  a 
simplo  barter  trade ;  and  trade  in  whidi  money  is  em- 
ployed. An  adverse  balance  of  payments  reduces  values 
under  both  systems  in  precisely  the  same  degree ;  and  in 
augmentiug  exports  restores  th0  equilibrium ;  while  a  favor- 
able state  of  the  exchange  enhances  values  alike  under  both 
systems,  and  leads  to  ihc^ased  imports  and  to  acyustment 
taking  place. 

In  thcf  case  of  lower  prices,  preceding  an  increase  in  the 
exports,  it  may  be  hastily  conceived  that  the  country  then 
makes  a  sacrifice ;  but  such  is  not  the  case.  The  balance  of 
trade  is  against  us,  from  the  fact  of  our  seeking  commodities 
at  a  cheaper  rate  than  we  can  provide  them  for  ourselves, 
and  the  presumption  is,  therefore,  not  unfair,  that  the  depre- 
ciation is  at  least  counterbalanced.  If  we  make  a  profit  in  the 
first  stage  of  a  transaction,  that,  for  instance,  of  buying  goods 
abroad  cheaper  than  they  can  be  produced  at  home,  the  profit 
on  the  paying  goods  exported  has  to  be  fiilly  sacrificed  before 
loss  is  suffered ;  and  H  is  to  be  observed,  as  we  shall  see 
hereafter,  that  the  effect  of  a  jiUeapening  of  our  produce 
reacts  favorably  upon  ourselves,  inasmuch  as  a  new  class  of 
buyers  is  created,  whose  consumption  to  a  greater  or  lesser 
extent  will  be  sustained,  when  prices  have  advanced  and  the 
balance  of  trade  been  restored.  Take  a*  case  in  point. 
During  the  low  price  of  breadstuffs,  two  or  three  years  sub- 
sequent to  1850,  direct  trade  was  opened  between  New  York 
and  Montreal  on  the  one  part,  and  the  seaport  towns  of  For- 
farshire, in  Scotland,  on  the  other  part.     Arbroath  flax 


OF  TBIOBT  AND  PBACfnOI. 


4T 


oanvM,  and  Dandee  sheetrngs  and  oordage,  were  exported  to> 
this  cibntineot,  and  barrel  floor  taken  in  exchange.  The  flour 
was  sold  at  a  price  relatively  lower  than  other  flour,  and, 
although  previously  unknown,  want  into  consumption  freely. 
So  much  other  flour,  either  of  local  or  East  ot  England 
manuiaoturo,  was  displaced,  and  a  considerable  new  perma- 
nent market  opened  up  for  American  flour.  The  trade 
unfortunately. cdlapsed,  and  has  not  since  been  revived ;  but 
to  this  day,  not  only  a  preference,  but  in  consequence  of 
the  taste  having  been  acquired,  a  relatively  higher  price 
would  be  paid  in  that  district.  Not  only,  therefore,  do  we 
not  lose,  when  to  p.rocure  a  larger  share  of  foreign  products, 
we  offer  produce  at  a  cheaper  rate»  as  the  exchange  must 
still  be  an  object  to  us,  and  a  benefit  of  course ;  but  we 
create  new  customers,  and  pave  the  way  to  tlie  extension  of 
our  trade. 

But,  it  may  be  said,  that  trade  is  not  really  carried  on  in 
this  formal  sort  of  way.  The  farmer  in  Illinois  not  unfre- 
quentiy  consults  his  own  convenience  in  the  bringing  forward 
of  his  wheat ;  the  Chicago  merchant  has  no  means  of  know- 
ing whether  the  balance  of  trade  is  favorable  or  otherwise  ; 
and  so  with  the  export  and  import  trade  in  New  York  city. 
It  is  either  all  guess  work,  or  the  relation  is  unheeded ; 
and  stuff  is  sent  and  received  for  unconditional  sale  in 
every  market.  Qranting  all  that,  it  must  itill  be  admitted, 
that  in  a  community  or  nation  there  is  a  limited  amount  of 
floating  capital,  and  a  limited  oapaaty  to  absorb  commo- 
dities at  any  price ;  and  if  that  limited  ciq>ital  is  absorbed 
in  purchased  or  imported  articles,  every  fresh  importation  or 
purchase  will  be  against  us,  and  we  must  either  make  pay- 
ments in  the  precious  metals  or  in  produce,  at  such  prices 
as  will  satisfy  those  we  owe.  On  the  other  hand,  if  that 
limited  capital  invested  in  produce  has  been  transmitted 
elsewhere,  then  the  balance  is  in  our  favoi;,  and  payment 
must  be  made  to  us  either  in  the  precious  metals  or  in 
merchandize,  at  a  satisfactory  equivalent  value.  It  matters 
nothing,  therefore,  in  what  way  trade  may  be  conducted,  as 
in  each  case  it  resolves  itself  into  imports  and  exports,  debts 


48 


Ottmili  PBINCnFIJB 


and  credits,  and  as  the  one  w  otiier  at  the  time  preponderate, 
80  there  is  a  baluiee  pt  trade  for  or  against,  and  the  eqnilir 
briom  can  ber^tored  only  by  direct  action  on  the  yalaes 
or  prices  of  those  commodities  which  axe  the  subject  of 
interohfmge.  Honey  is  j  inmiediately  appliealde  to  settle 
the  acconnt,  but  no  country  could  sustain  a  continuance  of 
adverse  trade  rJying  only  on  money,  as  the  stock  woidd 
fiiil ;  and  the  abstraction  of  money  from  the  limited  resenre 
acts,  therefore,  on  the  exchange.  Money  becomes  dearer 
and  other  -  hingi '  cheaper,  and  that  cheapness  of  othw 
things  limitc|, imports,  and  stimulates  exportation,  paying  our 
debts  uid  keeping  our  stook  of  the  pcecious  metals  from 
being  diminished  further* 

One  consequence  or  rather  application  of  this  a^usting 
principle  of  the  exchanges,  is  the  necessary  limitation  of  our 
export  trade  to  the  extent  of  our  own  demand  for  forei^ 
products.  What  we  send  to  foreign  countries  must  from 
necessity  be  settled  for  in  tiie  produce  of  foreign  countries^ 
as  in  the  long  run  these  countries  have  nothing  else  to  give ; 
and  when  the  extent  of  our  import  trade  is  made  matter  of 
complaint,  a  contraction  of  our  export  trade  is  necessarily 
impUed. 

With  respect  to  money  in  its  action  on  prices,  it  is  neces- 
sary to  observe  that  it  must  not  be  hoarded  up,  but  creating 
a  positive  demand  ibr  goods.  No  possible  inflaence  could  be 
exercised  by  any  extent  of  accumulation,  unless  the  money 
were  in  actual  circulation ;  and  the  theory  presupposes  that 
it  is.  Ever  since  the  revulsion,  we  have  had  the  phenomena 
of  a  large  unemployed  reserve  of  specie  in  New  York,  and 
declining  prices  ;  and  this  state  of  things  will  last  until  con- 
fidence is  restored.  That  estabUshed,  the  accumulated  trea- 
sure will  diffuse  itself  into  trading  channels,  and  money  and 
goods  become  reciprocally  demand  add  supply  to  each  other. 

The  principle  of  the  self-adjusting  character  of  the  exchanges, 
either  under  a  barter  or  money  system,  constitutes  but  one  of 
the  elements  of  the  theory.  <^  international  trade.  There  is 
another,  constituting  the  direct  motive  of  all  international 
dealing.    It  is  obviously,  for  some  substantial  purpose,  that 


V 


OF  nioBT  Ain>  niAonoi. 


49 


one  nation  traffics  nith  aootiier ;  and  not  for  the  gratifioatiott  i 
of  derelopittg  those  ingeidons  practioes,  in  settlii^  up  the  ia^ 
tenroTen,  complicated  transactions  of  erne  nation  with  everf 
otheir,  irhich*  obi«bi.    Tliat  motive  is  the  aoqnisi;^  of  ui 
increased  amonni  of  those  commodities  known  as  Wealth.     I 

Between  local  and  fbreign  trade  there  i  one  leading,  iin^ 
damental  point  of  difference,  inasmuch' as  the  one  is  mainly 
governed  by  adjacent  and  the  other  by  distant  values.  At 
home,  the  value  or  market  price  of  a  commodity  is  gienerally 
determined  bt  the  producing  cost;  and  abroid,  the  primary 
producing  cost  is  disregarded,  and  value  determined  on  the 
spot.  The  law  of  supply  and  demand,  which  is  anterior  to 
that  of  cost  of  production,  comes  into  operation,  determinii^ 
thai  the  demand  for  a  commodity  varies  with  its  value,  and 
the  value  so  a^usts  itself  that  the  draiand  exactly  absorbs 
the  supply.  That  subsequent  law  operates  on  few  articles  at 
the  place  of  their  production ;  but  it  is  paramount  abroad. 
The  distinction  is  important,  and  will  be  rendered  clear  by 
illustration. 

Take  the  familiar  case,  of  the  number  of  coats  and  waist- 
coats  in  a  country  being  equal,  one  of  each  only  is  worn  at 
once,  and  there  is  no  assignable  limit  to  the  production  of 
either ;  but  it  requires  about  three  times  as  much  material 
and  labor  to  produce  the  one  as  to  produce  the  other ;  and 
irrespective  of  the  number  of  each,  at  any  given  time,  the 
price  of  each  is  individually  and  relatively  determined  by 
the  material  and  labor  which  have  been  used.  In  such  a  case 
the  law  of  demand  and  supply  can  scarcely  be  said  to  apply. 
\f  the  demand  is  dull  for  coats  and  waistcoats,  it  operates 
upon  production  only:  fewer  of  them  are  made;  but  as  a 
general  rule  the  price  is  maintained.  The  reason  of  this  is 
obvious.  The  stock  cannot  be  replaced  on  better  terms;  and 
if  sold  for  less  than  cost,  an  unnecessary  loss  would  be  sus- 
tained. Such  transactions  are  therefore  governed  by  pro- 
ducing cost'. 

A  more  complicated  case  presents  itself  in  the  price  of 
agricultural  produce,  and  in  ^e  relative  value  of  wheat,  com 
and  oats.    Suppose  that  one  hundred  acres  were  sown  out 
4 


•p 
t 


*60 


09inBm<  FBIMGIFIJB 


with  wheat^aod  last  year  and  the  year  before  they  yielded  pre> 
dsely,  (m  eat^  toooafioni,  one' thousand  bushels.  The  cost  of 
jprodnctioa  and  ^e  yield  was  the  i^une  in  both  casoi ;  bat  the 
^^rmer  re(^ved  parent  at  the  r^te  of  fifiy  cents  j^  bushel 
for  the  one  crop,  a«^  i^  tilie  rate  of  one  dollar  a>.bn8hel  fiv 
the  other,  Oost  of  prodnction  does  not  therefore  apply  in 
sndi^oase,  Sni^XMie  again,  that  while  one  hundred  licres 
were  sown  oat  in  wheats  one  hundred  acres  were  planted 
with  com, and  one  hundred  acres  cropped  with  oats;  and 
that  the  respeo^ve  yield  of  each  hundred  acres  was  a  thoih 
sand  bushel^ ,  How  then  does  it  happen,  that  wheat  is  sold 
at  fifty  cents,  com  at  thirty  cents,  and  oats  at  twenty  cents ; 
while  in  each  case  the  same  number  of  acres  and  the  same 
labor  have  been  employed  ?  Obviously,  as  in  the  other  case, 
the  value  is  determined  by  the  force  >.  ^he  demand,  or  the 
degree  in  which  at  diiGTerent  times  eacl  ^  ^ty  is  desired. 
The  law  oi  producing  c^st,  and  thi  '  of  demand  and 
supply,  both  obtain  in  domestic  trade;  but  in  the  main. {do- 
mestic trade  rests  with  .the  former  only.  A  high  price  of 
^pricultural  produce  leads  to  extended  cultivation,  and  subse- 
quently to  a  range  of  prices  bordering  closely  on  the  bare 
cost  of  productiw;  and  farmers  study  to  grow  those  cereals 
only,  which  pay  them  best.  On  the  other  hand,  foreign  trade 
from  necessity  must  disclaim  all  consideration  of  the  primary 
conditions  of  production  that  may  be  involved.  We  could 
never  know  precisely  what  the  producing  cost  of  tea  was  in 
China,  sugar  in  Cuba,  or  coffee  in  Brazil ;  and  althou^  we 
did,  the  biowledge  wouM  be  worthless,  as  it  could  not  possi- 
bly have  any  influence  upon  ruling  values.  We  ship  produce 
to  these  countries ;  that  produce,  according  to  its  amount, 
constitutes  a  demand  for  such  commodities  as  are  offered, 
rendering  the  terms  of  exchange  favorable  or  unfavorable,  as 
the,  case  may  be,  and  giving  these- foreign  commodi^es  quite 
another  value  than  that  derived  from  the  labor  of  the  China- 
man or  Negro.  Supposing  an  experimental  shiinnent  by  a 
New  York  novice  to  either  of  these  countries,  was  found  to 
be  unsuitable,  on  being  landed,  and  was  only  exchangeable 
into  tea,  or  sugar,  or  coffee,  at  half  the  relative  value 


N-. 


OF  TBJSOfKt  AStt  ViULCSICE. 


51 


in 


which  aidtablo'aliiinimits  from  New  Todi  commuided;  then,  • 
in  ih«C  ptrtieidu)  easej  twice  the  woal  prioe  would  be  paid 
fiyrirhateve^  would  be  porohuedi  while  some  snitahle  new 
l^odttct  migKt  hftre  beent  aent,  oost&ig  rbletlTely  no^rare  thai) 
Hie  avenigv  of  oiir  exports,  bat  which  would  boy  what  wai 
wanted)  ei  ludf  the  osoal  price,  or  evenAt  a  lower  price  thaik 
tittkt  at  wiuoh  the  commodities  Ind  been  prodaoed.  In  Hm 
foreign  trade,  therefine,  tiie  primary  cost  .of  prodoction  is 
notiiing :  the  terms  of  exchange  being  goTomed  by  the  e^wi* 
tion  of  intematiciial  demand  and  intemationd  supply. 

&ippo8ing  that  the  United  Slates  import  coff»B  from  Bra^ 
bU,  giving  a  piece  of  dioth  for  every  bag  of  coffioe,  the  coet 
oi  the  coffee  in^  the  United  States  will  hot  be  determined  by 
the  cost  of  the  production  in  Brazil,  but  by  the  cost  of  the 
cloth  whidi  has  been  ^ven  away.  On  the  other  hand,  Ae 
cost  of  the  cloth  in  Brazil  will  not  be  determined  by  the  oost 
in  the  United  States,  but  by  the  cost  of  the  coflfoe  which  has 
been  given  away.  Now,  keeping  in  view,  that  for  the  time 
being,  the  law  of  supply  and  demand  determined  the  jHropot* 
tions  in  wUoh  the  coffee  and  the  doth  had  been  exchanged, 
and  that  the  {Nrimary  eost  d*  the  producti(m<  of  both  artides 
had  in  both  cases  been  set  aside,  we  are  enabled  to  consider 
the  advantage^which  the  United  States  and  Brazil  derive 
respectively  from  the  trade. 

In  the  first  plaee,  the  United  States  gives  one  product  and 
receives  another;  and  the>  product  received  being  exchange- 
able again  into  otiiers,  no  diofiination  of  the  natiohal  wealth 
has  taken  place.  The  United  States,  in  the  second  place, 
has  received  a  product  which  it  does  not  cultivate,  and  which 
possibly  could  not  relatively  be  had  dieaper  elsewhere ;  and 
instead  of  making  the  purchase  in  the  precious  metals,  which 
may  have  been  imported  without  advantage,  cloth,  in  which 
there  is  an  advantage,  has  been  employed ;  and  there  is  the 
additional  advantage  of  the  tendency  of  an  extension  of  the 
demand  for  cloth  to  improte  the  processes  of  the  producticm 
of  that  commodity.  The  United  States  derive,  therefore, 
essential  benefit  from  the  trade. 

Brazil,  on  the  other  hand,  in  parting  with  a  commodity, 


62 


amniBAL  PHiNOlVUBB 


n? 


!ii: 


wbioh  costs  her  extremely  little,  derives  through  the  influence 
of  foreign  competition  a  great  proportionate  pnrchasing 
power  over  the  elotb  oi^  the  United  States;  and  that  cloth 
Brazil  could  not  mantifacture  for  itself  but  by  a  large  absorp* 
tion  of  the  national  capitid,  and  a  diversi<m  frcMn  that  industry 
in  which  its  advantage  is  the  most.*  Brazil  in  the  growth  of 
coffee  has  advantages  akin  to  those  of  Ouba  in  tiie  growth  of 
sugar,  the  Soutl\em  states  in  the  growth  of  cotton,  and 
Illinois  in  the. growth  of  wheat.  Comparatively  little  capital 
is  needed  to  bring  a  large  quantity  of  coffee  into  market, 
and  the  liore^n  consumptive  progress  of  the  country,  without 
any  alteration  in  the  cost  of  the  production  of  coffee  taking 
place,  promises  still  further  to  increase  its  value.  If  then 
Brazil  sells,  its. coffee  with  an  advantage  of  a- half,  such  com- 
modities as  it  receives  are  cheapened  to  that  extent,  while 
trading. naticms  may  derive  ^a  profit  also. 
.  The  movement  of  bullion  from  the  steadiness  of  its  intrin- 
sic value,  furnishes  another  exemplification  of  the  principle 
of  which  we  speak.  A  dollar,  or  a  pound,  is  a  mere  name 
to  designate  so  many  grains  of  gold,  and  an  ounce  of  gold 
from  California  or  Australia,  is  received  on  the  same  terms 
in  New  York  city,  as  an  ounce  of  gold,  which  has  borne  the 
United  States  assay  and  been  in  circulation  for  twenty  years. 
This  arises  from  the  obstacles  to  production  ;•  the  durability ; 
the  great  value  as  compared  with  the  little  bulk,  and  the 
fractional  charges  on. the  transportatioin. 

A  gold  dollar  is,  therefore,  the  same  quantity,  the  same 
intrinsic  value,  in  New  York  and  San  Francisco ;  a  sovereign 
or  pound  is  the  same  intrinsic  value  in  London  and  Mel- 
bourne ;  but  generally  the  cottons  of  Massachusetts  exchange 
for  more  gold  in  San  Francisco  than  in  New  York,  and  the 
cottons  of  Manchester  exchange  for  more  gold  in  Melbourne 
than  in  London ;  and  if  Massachusetts  cotton  is  exchanged  in 
San  Francisco  for  gold,  and  Manchester  cotton  is  exchanged 
in  Melbourne  for  gold,  then  gold  will  generally  be  received 
at  a  profit  both  in  New  York  and  London.  There  may, 
therefore,  in  a  restricted  sense,  be  a  profit  realized  in  a  bul- 
lion trade,  but  that  profit,  be  it  observed,  is  derived  only 


or  THBOBT  AKt^  FK&CnOB. 


«8 


bd  in 

|nged 

jived 

|may, 

bul- 

only 


tram  the  advantage  that  we  have  ia  1^6  prodSiurtiOtt  of  the 
articles  whioh  ve  have  given  away,  and  no  additional  advan- 
tage is  derived  from  the  gold.  Bat  why  does  cp|t(Hi  geneN 
ally  exchange  for  more  gold  in  Galifomia  and  Atisti«lia  tlian 
in  New  York  and  London  ?  In  "tiie  fUret  place  there  m  of 
iconise  the  increaaed  cost  of  transporting  cotton  to  tbeiM 
parts,  and  ait  cotton  is  neitiier  uAnnfactored  in  Oalifomia  nor 
in  Anstralia,  and  f^m  the  previond  habits  of  the  people  fs 
an  indispensable  article  of  apparel,  a  large  premium  would 
willingly  be  paid  by  those  even  who  conld*  least  afford  it, 
while  the  rich  would  not  be  without  it  at  almost  any  prieo. 
Its  value  would  be  governed  therefore  by  demand  and  supply ; 
and  if  little  were  in  the  market,  that  little  would  commi|fid  a 
higher  price  or  a  gyater  quantity  of  gold ;  and  if  fiie  market 
were  Well  supplied,  then  a  lower  price  or  a  lesser  quanMty'of 
gold  would  be  only  realized. 

It  is  nothing,  therefore,  what  the  value  of  gold  may  be  in 
New  York  or  London,  or  what  gold  may  have  cost  in  Gali- 
fomia or  Australia ;  its  cost  at  any  given  point  is  measured 
solely  by  the  production  of  the  commodities  whioh  have  beto 
tendered  for  it  in  exchange,  and  it  may  at  times  be  more  pro- 
fitable to  receive  gold  from  other  countries  or  to  siend  it 
abroad,  than  to  import  or  export  any  other  product. 

From  these  consideraticms  the  principle  appears  to  be  de- 
duced that  it  is  hot  the  (dfsolfUe  but  thd  comparative  cost  of 
commodities  that  determines  international  exchange.  We 
have  nothing  to  do  with  the  matter  of  the  first  cost  of  iron 
on  the  Clyde  in  Scotland,  of  linens  in  Belfast,  or  cottons  in 
Manchester ;  and.  England  has  nothing  to  do  with  the  cost  of 
cotton  in  Alabama,  or  wheat  and  com  in  Illinois.  It  is  im- 
material how  much  or  how  little  natural  agents  may  promcte 
production  in  other  countries,  and  whether  white  or  negro 
labor  is  employed.  The  real  question  is,  how  much  cheaper 
can  foreign  commodities  be  procured  by  tiie  indirect  process 
of  producing  something  else,  and  giving  that  something  elise 
in  exchange,  instead  of  producing  everything  for  ourselves? 
That  is  the  question  on  which  ■  turns  the  theory  of  foreign 
trade.    If  every  article  of  foreigi)  merchandise  had  a  fixed 


rl 


64 


OENISAL  FBDfGIPLBB 


▼alae  is  e^eiy  market,  a&d  Ibat  valae  were  not  determined 
\jf  tiie  oott  of  prodnctioa  at  the  placed  wliere  the  product  iros 
ooBsmned^,  but  by  the  cost  of  production  at  the  place  of 
original  m^nfactote,  then  the  opposite  theory  would  be  uot 
dento^;  but  such  a^iyttem  does  not  obtam,  in  the  more 
obsjpure  trade  of  Asia,  much  less  in  that  of  the  United 
States  and  Europe.  Under  such  a  ^Btem  the  wheat  of 
Illinois,  less  the  freight  and  charges,  would  sell  in  England 
at  twenty-five  cents  It  bushel,  or  eight  shillings  sterling  per 
hnperial  quarter,  and  English  manufhctures  would  sell  in  the 
United  States  at  a  price  equivalent  to  makers'  cost  and  tome- 
port;  and  in  the  face  of  English  wheat  in  England  com- 
mai^ding  a  five-fold  greater  price,  and  Americtm  manufac- 
tures in  the  Umted  States  being  prodncfd  and  offered  at  a 
cheaper  rate.  In  fine,  there  would  be  little  or  no  motive  to 
i:breiga  trade  at  all,  unless  ih  those  commodities  which  could 
be 'produced  only  under  peculiar  circumstances  of  soil  and 
atmosphere. 

On  the  other  band,  the  system  of  comparatii«  cost  dis- 
closes the  secret  of  foreign  trade,  giving  us.  to  understand 
tiiat  it  may  be  more  profitable  to  import  some  of  those  com- 
modities which  we  consume,  even  although  we  ourselves  can 
produce  thobc  commodities  ui  a  cheaper  rate  thim  the  for- 
eigner with  whom  we  trade;  and  that  we  may  in  reality 
receive  our  impwts  at  less  cost  than  that  involved  in  their 
original  manufacture. 

For  example,  the  coarser  descriptions  of  cottons  are  manu- 
fectored  cheaper  in  Massachusetts  tiban  in  Manchester,  but 
'the  cottons  of  Manchester  may  be  purchased  with  wheat 
raised  in  Illinois,  and  sold  in  Liverpool,  wit^  a  clear  advan- 
tage of  one  hundred  pa^  cent,  above Ihe  raising  price;  and 
if  Massachusetts  cotton  costs  four  cents  a  yard,  and  Manches- 
ter cotton  a  fraction  more,  still,  by  virtue  of  the  wheat  ex- 
change, Muichester  cotton  would  be  received  fifty  per  cent, 
cheaper  by  the  United  States  than  the  home  predict.  In 
such  a  case  it  is  clearly  to  the  advantage  of  the  United 
States  to  import  Manchester- cottons,  even  although  we  could 
produce  those  cottons  at  a  cheaper  rate  than  the  English 


V 


OF  TBBOIT  Ain>  nuORGI. 


56 


naaahebanr.  TheaSi  if  ovir  whole  importi  are  »  mere  ezte»> 
«hm  of  the  fHrincii^  of  receiTuig  foieign  ]«<od«ete,  end  pej- 
ingifor  ilKem  with  the  prodnoe  of  those  natural  agente^u^ 
industry  in  whidb  our  adfantf^;e  ie  the  moat,  these  kopoda 
may  in  reality  be  receiyed'^  oil  less  oneroas  eonditiODa  than 
those  involved  in  the  origiaal  produeiag  cost. 

Bat,  it  may  be  jiswered,  that,  in  consuming  Massadiuaetti 
cottons,  in  preferrace  to  those  of  Hanchester,  we  are  weoui^ 
aging  native  induslxy,  and  providing  enjoyment  iat  >m 
numerous  eastern  working  populati<m.  Ify  it  is  said»  we 
produced  these  and  other  things  lor  ourselves,  the  wealth  of 
the  oiMintry  woidd  not  be  dismpated  to  pay  our  impcnrts  by 
specie  shipments  to  Ihe  Bank  of  England }  but,  in  addUim 
to  our  present  productive  foroes^we  wonld'  he  kept  friNn 
squandering  anything  away.  Penn^lvania  and  Lake  Supe> 
rior  would  supply  iron,  and  the  mines  of  Qalena  an  exhaust- 
less  stock  of  lead;  and,  at  the  seat  of  manufactures  ia  the 
East,  theoottcmof  the  South  and  the  wool  and' flax  of  the 
North  become  worked  up  into  every  kind  of  textile  fabric. 
The  silkworm  of  France,  i^  tea  plant  of  Ohina,  and  the 
coffee  shrubs  of  Brazil  and  Java,  could  be  introduced ;  and 
on  the  sunny  banks  of  the  Mississippi  we  might  gatiier  a 
better  mintage  than  that  of  the  Peninsula.  Such  is  the 
picture  of  a  perfect  state  of  things,  wUch  would  fill  our  cup 
.  with  plenty,  and  without  letting  a  single  drop  run  over.  We 
would  flood  the  world  with  our  produce  and  our  manufiurtures, 
and  no  opening  would  present  itself  to  the  foreigner,  to 
compete  with  our  domestic  industry. 

Unfortunately  for  such  a  theory,  the  matter  of  getting  pud 
is  wholly  overlooked.  If  we  fill  Liverpool  with  wheat  and 
cotton,  in  what  way  is  Liverpool  to  rend«r  payment  ?  Gk>ld 
could  be  sent  only  for  a  little  while,  and  even  Ihat  commodity 
would  speedily  inflict  injury  upon  the  interest  of  the  dcunestic 
digger,  by  bringing  his  labor  into  competition  witii  •  tiie 
foreigner.  To  make  the  system  perfect,  gold  would  have4o 
be  excluded  also  r  and  what,  in  the  name  of  W(mdePj  could 
we  then  receive  ?  Something  or  other  would-be  imperatively 
reqmred,  or  our  labor  would  be  thrown  away,  and  we  reduced 


66 


onmAL  PRnromJB 


to  the  neoestitjr  <^  prodttoiiig  for  ourselves  alone,  and  of 
becoming  isolated  llrcnn  Hie  other  sections  of  the  human  race< 

But  the  Maoy  inTolved  in  the  theory  of  producing  et^ry- 
thing  that  we  consume^  i^  a  means  of  increasing  national 
wealth,  will  be  better  understood  by  practical  illustration* 
The  wheat  receired.  in  store  in  Ohicago,  costs  the  farmer,  on 
an  average,  twenty-five  cents  a  bushel ;  and,  on  an  average 
of  years,  that  wheat  is  sold  in  Chicago  at  a  dollar.  A  profit 
of  three  times  the  amount  of  cost  is  therefore  realized  in  the 
growth  of  wheat  in  Illinois;  and  if  the  whole  population  of 
the  United  States,  under  like  circumstances,  were  engaged 
growing  wheat,  that  advantage  would  be  gained.  Let  ut 
suppose  that  population  of  working  hands  to  be  ton  millions, 
and  to  be  «o  employed,  and  driving  the  English  agriculturist 
from  his  occupation  to  some  other  industrial  pursuit.  AU  at 
once  it  is  resolved  to  impoi^  nothing  more,  but  to  start  the 
manufacture  of  everything  that  we  require.  For  this  purpose, 
we  shall  say,  five  millions  of  the  population  are  detailed,  and 
mines  are  opened,  and  manufactories  built  and  put  into 
operation.  What  then  follows^  Land,  formerly  in  cultivar 
tion,  returns  to  original  wildness,  and  our  agricultural 
business  is  reduced  a  half.  But  what  is  the  advantage 
gained  in  the  new  industrial  occupations  that  have  been 
opened  up  ?  The  hianufactured  cotton  of  Massachusetts  is 
produced  with  an  advantage  of  ten  per  cent,  on  the  capital , 
employed,  and,  generally,  neither  it  nor  the  iron  of  Pennsyl- 
vania can  compete  with  the  foreign  product.  The  industry 
of  five  millions  of  working  hands,  which  previously  yielded 
a  return  equal  to  three  times  the  capital  employed,  now  yields, 
we  shall  say,  ten  per  cent,  only ;  and  thus,  by  the  change, 
two  hundred  and  ninety  per  cent,  advantage  is  absolutely 
thrown  away.^ 

In  every  community,  or  nation,  there  is  both  a  limited 
population  and  a  limited  amount  of  capital  available  to  put 
that  population  to  productive  industry ;  and  with  a  nation  as 
with  an  individual,  if  one  thing  is  undertaken,  something  else 
is  let  alone.  A  farmer  cannot  also  become  a  manufacturer, 
unless  in  exceptional  cases,  where  a  large  amount  of  capital 


V 


OF  fBBOBT  AMD  PBAOBGl. 


67 


lias  been  aooamBlated  in  indhidnal  hands;  but  <me  pnnniit 
it  ezohanged  for  the  other,  and  both  in  ftrming  and  rnann- 
fliotjuring  there  is  a  ddlaed  point  beyond  which  |he  nuwt 
willing  cannot  go.  To  eay  that  a  nation  can  aciioniplish  att 
that  it  desires,  is  to  sfty  in  fact  tiiat  individnal  enterprise  and 
•ndertakings  know  no  bounds,  an  assertion  which  indiTidnal 
experience  proves  to  be  absnrd. 

Then,  as  to  one  nse  of  capital  yielding  one  return,  and  a 
different  nse  another,  that  fact  is  too  freely  admitted  to  need 
formal  proof.  Where,  in  this  western  country,  is  labor  so 
well  bestowed,  as  in  breaking  up  the  prairie  ?  and  it  is  only 
because  the  habits  and  associations  of  the  mass  are  interwoven 
with  oily  life,  that  agricultural  pursuits  are  not  more  generally 
embraced.  The  amenities  of  city  life  have  a-  eharm,  whidi 
the  competition  and  risk  of  trade  cannot  countervail,  and  tiie 
pleasures  of  society  are  received  as  the  equivalent  of  the 
fiurmer's  more  substantial  product.  The  accumulative  wealth 
of  the  conmiunity  is  curtailed,  however,  when  the  less  pro- 
dnctive  occupation  is  prefeired ;  and  the  rule  applies  equally 
to  foreign  trade.  If,  instead  of  producing  those  things  in 
which  oar  advantage  is  the  most,  we  produce  those  things 
which  could  be  purchased  cheaper  elsewhere,  we,  under  the 
mistaken  notion  of  providing  work  for.  those  who  otherwise 
would  ultimately  become  more  profitably  emnloyed,  impose 
fetters  upon  our  material  progress.  No  man  need  be  witiioot 
employment  in  the  United  States ;  and  so  long  as  the  value 
of  agricultural  produce  continues  to  be  governed  by  the  price 
in  England,  so  long  will  labor,  expended  on  the  unrented  and 
untithed  western  prairies,  present  the  bestmeans  of  increasing 
in^vidual  and  national  wealth. 

If,  therefore,  our  advantages  in  l^e  production  of  grain  are 
superior  to  those  of  Europe,  then,  by  their  developnent,  we 
may  procure  the  commodities  of  Europe  in  which  our  advan- 
tages are  the  least,  on  more  advantageous  terms  than  if  we 
undertook  the  production  f(xr  ourselves.  In  this  way  the 
anomaly  is  explained,  of  the  United  States  growing  cotton, 
and  afterwards  receiving  that  cotton  in  a  manufactured  state 
from  other  countries.    The  value  of  the  raw  cotton  is  deter- 


GCKBUL  ntawmM 


mined  by  its  denuuid  or  utility  abroad,  and  not  by  its  pvo» 
daoing  cost,  and  the  differenoe  between  Ae  cost  to  us  and  the 
selling  price,  is  ihe  advantage  that  we  derive;  and  it  may 
either  be  expressed  in  the  preoioos  metals  or  in  an  inoreased 
demand  over  foreign  prociuots.  So  £ir,  then,  the  trade  is 
profitable  to  us  and  to  the  mannfactnring  countiies  of  Burope 
which  we  supply.  These  countries  compete  with  one  another 
in  paying  us  the  highest  price  for  the  raw  material,  and 
afterwards  compete  with  one  another  in  selling  us  the  manii* 
faotured  article  at  the  lowest  price.  All  that  we  pay,  then, 
as  difference  for  the  manufaotttred  nrtiole,  is  the  mere  interest 
on  outlay  in  the  worlung  up;  and,  as  a  general  things  the 
interest  of  nnmey  is  lower  in  Europe  than  in  the  United 
States,  and,  not  unfreqnently,  the  difij^rence  in  the  rate  would 
be  equivalent  to  the  transportation  of  the  raw  and  manufao- 
tnred  cotton  across  the  Atlantic.  We,  therefore,  get  the 
spinning  and  weaying  done  on  the  same  terms  aS  they  conld 
be  done  in  the  United  States ;  and  the  capital  invoWed  in  the 
manufacture  in  Europe  has  not  to  be  taken  from  our  resources 
and  set  apart  for  that  object.  The  appropriation  of  an  equal 
sum  by  us  would  so  fai*  necessarily  cripple  other  undertakings ; 
while,  otherwise,  that  sum  might  promote  the  cultivation  of 
gprain  and  cotton,  which,  besides  being  the  great  staples  of 
the  country,  yield  the  largest  return  from  any  given  expen- 
ditrare  of  capital  or  labor. 

On  economical  grounds,  the  production  of  raw  oott(m,  like 
the  production  of  wheat,  is  more  profitable  to  the  United 
States  than  the  working  up  oi  raw  material,  inasmuch  as 
the  American  manilfaoturer,  as  a  buyer  of  raw  cottcm,  is  on  no 
better  footing  than  the  manufacturer  in  Manchester,  Boulogne, 
or  Antwerp,  and  manufacturing  profits  are  less  than  those 
derived  in  the  produce  trade.  It  is  to  be  observed  further, 
that  the  improvements  in  the  finer  branches  of  eotton-spinning 
and  cotton-weaving  machinery'  are  so  frequent  and  so  funda- 
moital,  that  one  country,  or  even  section  t>f  the  same  country, 
has  not  been  able  to  overtake  another,  and  those  first  in  the 
field  promise  to  maintain  Hie  foremost  rank.  It  appears, 
firom  evidence  led  before  a  committee  of  the  British  Pariia- 


l 

M 
0 
0 
C( 

ni 
tb 


\ 


OF  nUOBT  MSD  niofioi. 


mmti  that  Bnglnd  beg«n  ootton  Bpiinilig  tweaty-flfe  jmn 
before  Sootknd,  and  Maaobeeter  ki  still  twenty4tTe  yeart 
ahlhid  of  Paialej  and  Olaagow.  The  machinery  ordered  for 
a  ikotory,  idmite  of  impraremrat  before  the  machinery  bu 
been  let  in  motion ;  and  <»e  impro?ement  snooeeds  anotfier 
with  a  rapidity  unknown  in  any  other  braneh  of  indartry. 
If  that  is  so,  then  England  will  continue  to  produce  tee 
manaiiMtured  cottons  at  a  cheaper  rate  than  Scotland  or  the 
United  States ;  and  it  will  only  be  under  tiie  shield  of  pro- 
tective duties  that  our  manufacturers  can  ever  worlc  their  way 
along.  To  the  extremity  of  supporting  native  industry  at 
•uoh  a  sacrifice,  the  United  States  is  not  yet  happily  reduced, 
and  should  not  be  so  for  at  least  a  century  to  come.  The 
effect  of  protective  duties  is  certainly  to  sustain  <iiat  which 
is  too  weak  to  stand  upon  its  merits,  but  it  does  so  at  the 
expense  of  other  interests.  The  taxed  manutkctured  products, 
in  consequence  of  increased  cost  to  the  consumer,  aee  in  more 
limited  demand;  and  it  has  been  shown  already,  that  the 
consequence  of  diminished  imports  is  diminished  shipments, 
either  in  quantity  or  in  value,  to  other  countries. 

The  great  object  of  exchange,  whether  domestio  or  foreign, 
is  to  procure  commodities  at  a  cheaper  rate  than  we  can 
provide  them  for  ourselves,  and  the  advantage  of  such  ex- 
change consists  in  the  larger  available  fhnd  remaining  appli- 
cable for  investment  in  other  things;  In  exact  proportion  as 
the  necessary  expenses  or  investments  of  an  individual  are 
great  or  small,  so  has  the  individual  more  or  less  unemployed 
oapitalin  hand;  and  every  cheapening  process  of  production 
is  equivalent  to  an  increase  in  individual  and  national  wealth. 
To  create  obstacles,  whether  legislative  or  otherW' «,  is  in 
direct  antagonism  to  that  principle,  and  in  effect  is  nothing 
less  than  a  diminution  of  productive  power.  It  matters  not 
whenc^  the  cheapening  process  is  derived ;  it  is  ^xough  that 
our  products  have  acquired  an  increased  command  over  those 
of  otiier  countries,  or  that  some  ^lecial  articles  produced  and 
consumed  by  ourselves  can  be  had  at  a  cheaper  rate.  Inte?- 
national  trade  extends  the  sphere  of  operations  and  brings 
the  natural  and  acquired  advantages  of  the  world  together; 


60 


OJMBUt  PBDIOinJi 


and  although  one  nation  hw  the  misfortnne  of  prodnoing 
•ome  things  lest  adrantageonsly  than  its  neighbors,  still  it 
prodooes  other  ^ngs  under  the  most  fkyored  aaspiees,  and 
reape  the  profit.  The  United  States  may  not  cope  witii  £ng> 
land  in  the  manu&ctoito  of  textile  fabrics ;  bnt  it  infinitely 
surpasses  England  in  the  production  of  raw  material ;  and 
the  derelopment  of  manufootares  in  England  is  ui  example 
to  the  world  of  what  can  be  accomplished  hf  intelligence  and 
capital,  even  when  okiaided  by  the  powers  of  nature.  Eng- 
lish manufacturers  draw  their  supplies  of  raw  material  from 
the  remotest  comers  of  the  world,  and  sell  the  manufiftctnred 
article  at  a  cheaper  rate  than  those  who  have  the  raw  mate- 
rial at  their  doors,  and  for  one  reason :  because  something  else 
is  received  in  exchange,  on  better  terms  than  it  can  be  had  in 
England.  That  is  the  great  motive  power  of  international 
trade,  and  all  consideration  of  the  cost  of  what  we  ofier,  is 
lost  in  the  consideration  of  the  comparatively  greater  value 
of  what  we  receive. 

The  theory  of  trade,  then,  resolves  itself  into  two  princi- 
ples :  that  of  cost  of  production,  and  that  of  demand  and 
supply.  With  respect  to  the  former,  it  may  be  said  that  the 
law  only  obtains  at  that  place  where  the  exchange  is  sought 
to  be  made.  Coal  at  the  bottom  of  the  shaft  possesses  one 
value,  at  the  mouth  of  the  shaft  another  value,  and  at  any 
distancafrom  the  pit,  in  proportion  to  the  cost  of  transporta- 
tion. This  simple  law  is,  however,  subject  to  disturbing 
influences.  When  coal,  from  a  given  place,  is  put  down  at 
another  place,  it  becomes  a  question,  whether  coal  could  not 
be  brought  cheaper  from  somewhere  else,  and  if  so,  and  the 
commodity^  from  both  places  is  put  upon  the  market,  then 
that  paying  the  least  charges  will  be  sold  at  the  cheapest 
rate,  and  that  paying  the  most  charges  may  be  driven  from 
the  market.  Another  disturbing  influence  may,  however, 
come  into  operation,  and  coal  from  both  districts  continue  to 
be  received,  and  this  would  occur  in  the  case  of  coal  being 
too  limited  in  supply.  The  price  of  coal  would  not  then  be 
so  much,  determined  by  what  it  really  cost  to  bring  to 
market,  as  by  the  extent  of  the  sacrifice  which  people  were 


a 
c 
n 
n 
tl 
U 
m 
w 
n 
tb 
in 


OF  n«»T  HID  nuonoi. 


ei 


prepared  tp  make  for  its  ecqaisitioii.  Thni,  retertlng  to  % 
previoiM  illnrftratioii,  the  Telae  of  Ohioago  wheat  in  LiTerpool 
k  Mt  determined  by  the  ooit  to  the  farmer  of  IlUnois,  and 
the  expense  of  tnmtportation,  bat  by  Uie  force  or  weal[nei|i 
of  the  demand  for  wheat  in  Idverpool. 

Then,  with  reipect  to  the  law  of  demand  and  supply,  it  if 
to  be  observed,  that  law  is  all  bnt  absolate  in  foreign  trade. 
We  may  nianuiaotnre  the  coarser  kinds  of  cottons  at  a 
e  ieap<T  rate  in  I  iassachusetts  than  they  can  be  produced  in 
Tiianch'jster,  und  still  it  may  be  more  profitable  to  import  the 
dearer  r  rticl>^ ;  and  we  may  produce  iron  at  a  cheaper  rate  in 
Pemsylvar'a  than  -'  can  be  brought  from  Clyde  or  WaleSi 
but  national  intere      may  be  best  snbeerved  by  the  importer 
tion  of  that  comi  eUity.    The  reason  of  this  is  obvious.  We 
export  tt^     ViUc  of  our  '^    4uce  to  England,  and  England 
being  a  -nan  :*Uctaring  country,  that  produce  can  be  paid  for 
in  manufactures  only.    Oold  mi^U;   jo  sent  for  a  time,  to 
balance  the  account,  but  the  supply  of  gold  is  limited,  and  by 
the  regulation  of  the  English  currency  the  abstraction  of  gold 
would  loiter  the  price  of  every  thing  and  discourage  further 
produce  shipments  from  the  United  States ;  and,  at  the  same 
time,  offer  a  direct  bonus,  on  the  purchase  of  manufactured 
articles,  to  balance  international  claims.    It  is,  therefore,  a 
necessary  condition  of  our  export  trade  to  England,  that  we 
should  receive  English  manufactures  in  return,  and  the  ques- 
•.on  is  the  real  comparative  cost  of  English  domestic  products 
to  the  country.     From  the  growth  of  cotton  the  general 
advantage  to  the  United  States  is  equivalent  to  fifty  per 
cent.,  or  a  half;  and  the  general  advantage  in  the  growth  of 
wheat  is  the  same ;  and  these  advantages  invested  in  English 
manufactures,  those  manufactures  cost  us  half  only,  and  less 
than  their  producing  cost.    To  receive  manufactures  on  these 
terms,  rather  than  at  actual  cost  and  profit  to  the  domestic 
manufacturer,  is  the  great  object  and  design  of  trade ;  and^ 
with  the  terms  of  such  exchange,  cost  of  production  has,  in 
reality,  no  concern.    The  goods  offered  by  both  parties,  on 
the  same  market,  are  demand  and  supply  i    each  other,  and 
in  proportion  as  commodities  are  scarce  or  plentiful,  and 


62 


OENBtAL  FBINCIFLES 


1'  ,•  ttSfi' 


itili!!; 


^  objects  of  desire  or  otherwise,  so  the  terms  of  exchange  mre 
fitvorable  or  anfaTorable,  as  the  oase'ini^be.  *  T6  prodnoe 
wheat  and  oottoa  is  to  tarn  the  resonrces  of  the  nation  to  the 
best  account,  and  to  manuftu^ttare  is  to  tnm  them  to  the  least 
account,  and  to  check  tke  development  of  export  trade. 

We  now  pass  to  those  principles  which  govern  the  practice 
of  international  trade?  and,  in  a  general  way,  these  may 
be  designated  as  profit  and  details.  What  constitutes  the 
motive  oi  international  trade?  and  what  is  the  method  of 
entering  into  transactions,  and  settling  these  transacti(»i8  up? 

With  respect  to  the  latter,  business  organization  is  now  sO 
perfect  that  the  whole  system  admits  of  exposition  in  few 
words.  The  business  men  of  one  country  have  their  repre- 
sentatives  in  another,  and  through  these  representatives, 
introductions  and  orders  are  transmitted  from  one  comer  of 
the  world  to  every  other;  and  it  is  scarcely  necessary  to 
remark  that  bills  promising  payment  of  specific  quantities  of 
gold  and  silver,  at  given  times  and  places,  constitute  the 
medium  of  balancing  accounts.  Supposing  that  a  Chicago 
merchant  determined  to  embark  in  the  China  trade.  To  this 
determination  he  would  probably  be  led  by  comparing  the 
price  of  tea  in  China  and  New  York ;  or  by  the  advantages 
accruing  from  the  shipment  of  some  particular  kind  of  manu- 
factures. His  first  step  then  is  to  open  negotiations  with 
some  New  York  house  having  connections  in  the  China  trade. 
He  is  then  introduced  to  the  China  houses,  and  if  desirous  of 
buying  tea,  he  will  require  to  provide  London  bankers'  credit 
for  the  amount  that  may  be  drawn  for;  or  if  he  desires 
simply  to  export,  an  arrangement  is  there  made  as  to  the 
amount  of  advance  to  be  received  on  each  consignment,  and 
when  the  goods  have  been  sold,  the  cash  balance  can  be 
received  in  any  form  that  may  be  wished.  That  is  the  whole 
operation,  and  if  the  bills  maturing  upon  one  country  are  not 
met  by  bills  maturing  upon  others,  then  a  specie  movement 
must  be  made  to  settle  the  account.  The  meaning  of  the 
phrase,  "  London  credit,"  is  the  gettiug  of  a  London  banker 
to  agree  to  protect  any  set  of  bills  that  may  be  drawn,  so 
that  when  the  term  of  shipping  credit  has  expired,  the  shipper 


OF  THEOBT  ANV  FBACnCE. 


68 


of  the  goods  will  be  promptly  paid.  London  credit  is  then 
eqaiyalent  to  cash,  and  before  a  London  banker  can  engage 
to  protect  any  set  of  bills,  he  must  be  made  secure.  How 
tiien  is  that  to  be  done  ?  The  Chicago  merchant  gives  h^ 
lands  or  buildings  in  trust  to  the  New  York  house,  at  such 
value  as  may  be  agreed  on,  and  the  New  York  house  secures 
the  London  banker,  and  thus  the  way  is  opened  up  to  the 
transaction  of  business  between  the  most  distant  parts. 

The  advantage  or  the  profit  of  course  forms  the  motive, 
and  we  now  proceed  to  the  development  of  the  principles  and 
practice  of  the  trade  of  the  United  States  and  England. 


CHAPTER  III. 


....„ .-  J., 


THEORT  AND  PBAGTICE  OF  THE  TRADE  OF  THE  UNITED  STATES 

AND  ENGLAND. 

In  the  preceding  pages  we  have  arrived  at  the  follow- 
ing conclusions.  We  have  seen  that  every  usefol  product 
is  wealth  in  the  same  sense  that  gold  and  silver  are,  and  con- 
vertible into  the  precious  metals,  either  at  home  or  abroad. 
It  is  conceivable,  therefore,  that  a  country  possessed  of  a 
large  stock  of  useful  articles,  could,  by  offering  advantageous 
terms  of  exchange,  draw  to  itself  a  large  accumulation  of 
the  precious  metals.  Foreign  buyers  can  be  found  at  all 
times  and  seasons,  with  gold  in  thoir  hands,  if  grain  or  cot- 
ton, or  any  product,  is  offered  at  a  sufficient  discount  below 
the  market  price  ;  and  we  as  they,  are  ever  ready  to  close  a 
specie  bargain,  of  an  advantageous  kind.  The  quantity  of 
specie  held  by  a  country  may  be  said,  therefore,  to  be  a  mere 
matter  of  convenience  and  choice,  and  not  in  any  way  indi- 
cative of  its  wealth  or  poverty.  For  the  last  year  or  two, 
France  has  now  and  thpn  entered  the  English  bullion  market, 
and  bought  up  gold  at  a  premium,  and  any  other  country 
could  do  the  same,  without  assignable  limit  to  the  extent  of 
the  operations.  That  is  conclusive  evidence  of  the  fact,  that 
specie  is  not  more  desirable  than  other  things,  and  that  it  is 
a  mere  kind  of  wealth,  and  nothing  more,  and  one  of  which 
at  any  time  as  much  can  be  had  as  is  desired. 

The  object  of  domestic  or  foreign  trade,  is  obviously,  there- 
fore, not  the  acquisition  of  gold  and  silver,  but  the  acquisi- 
tion of  those  utilities  which  all  as"*  much  desire.  How  little 
gold  and  silver  is  possessed  i individually,  by  the  people  of  a 
country,  and  comi.  j  red  with  the  possession  of  other  things, 
how  little  is  desired.  When  an  individual  comes  :nto  the 
possessioil  of  monied  wealth,  he  forthwith  invests  it  in  some- 


V 


jre- 
lisi- 
Ittle 
]f  a 

fg8» 

the 
line- 


TRADE  OF  UNITED  STATES  AND  ENGLAND.  66 

r 

thing  else,  and  is  satisfied  to  dispense  with  currency,  as  much 
as  possible,  in  the  settling  up  of  his  business  matters.  He 
puts  one  account  against  another,  and  gives  a  check  upon  his 
banker  for  the  balance,  and  that  balance  the  banker  usually 
settles  on  the  offset  system  with  some  one  else,  without  cur- 
rency being  passed.  It  is  not  for  money,  therefore,  that  we 
are  scrambling,  but  for  an  increased  supply  of  those  commo- 
dities which  are  objects  of  desire  by  all  and  sundry ;  and 
money  we  regard  as  a  mere  medium  of  exchange  only ;  infi- 
nitely convenient  on  some  occasions,  and  infinitely  superfluous 
on  others. 

We  have  seen  further,  that  cost  of  production  goes  a  little 
way  only,  in  the  determination  of  the  proportions  of  an  ex- 
change. The  Liverpool  broker  does  not  ask  what  our  pro* 
duce  really  costs  us,  that  he  may  ask  a  fair  price  for  it,  and 
nothing  more,  and  we  do  not  ask  the  Eastern  dry  goods  job- 
ber  what  the  present  rate  of  English  manufacturing  wages 
is,  or  what  the  influence  of  the  legally  abridged  hours  of 
factory  labor?  These  questions  are  quite  irrelevant,  and 
never  raised.  One  measured  bushel  of  wheat,  of  sixty-seven 
pounds  weight,  is  as  good  as  another  measured  bushel  of 
equal  weight,  and  both  are  rated  equally  on  the  market ;  and 
one  piece  of  lace  or  lawn,  equal  to  another,  is  entitled  to  the 
market  value,  although  the  product  of  a  work-house.  The 
original  expenditure  of  labor  or  capital,  is  nofr  recognized — 
the  means,  in  fact,  by  which  they  came  into  their  owner's 
hands,  is  not  inquired  into — and  the  question  for  determina- 
tion is  the  value  on  the  spot.  Do  we  want  sugar  at  Havan- 
na,  in  exchange  for  flour,  then  the  equation  of  the  demand 
and  supply,  of  these  commodities  respectively,  and  relatively 
to  each  other,  determines  tho  proportions  in  which  the  one 
will  exchange  for  the  other,  irrespective  of  the  kind  of  labor 
by  which  the  sugar  has  been  raised,  or  whether  the  wheat 
has  been  grown  between  eastern  stumps,  or  on  the  broad 
unobstructeol  prairie.  If  sugar  is  plentiful  and  pressing  on 
the  market,  and  flour  scarce  and  sought  for,  then  sugar  will 
be  got  on  easy  terms,  and  vice  verm. 

Putting  together  these  two  results,  that  utilities  in  general 
6 


66 


THBORT  AND  PRACTICE  OF  THE 


;i'j.. 


m\ 


1  i  f  •' «: 


m.y:\' 


are  woalth  in  the  same  sense  as  gold  or  silver)  and  that  com- 
modities do  not  exchange  in  proportion  to  the  original  pro- 
ducing cost,  but  in  proportion  to  the  force  or  weakness  of 
the  obstacles  which  limit  the  supply  of  each  at  that  point 
where  the  exchange  is  made,  we  arrive  at  a  conclusion  ap^ 
proximating  closely  to  that  on  which  the  theory  of  divided 
labor  is  sustained.  To  amass  wealth  or  useful  products  is 
the  groat  aim  of  trade ;  and  original  producing  cost  being 
unnoticed,  the  cheapest  market  for  our  purchases  and  the 
dearest  for  our  sales,  further  that  end  the  most.  That  con- 
clusion will  commend  itself  to  every  business  man,  as  being 
in  conformity  to  his  daily  rule  and  practice,  and  when  the 
individual  wealth  is  augmented,  not  by  mere  transfers  from 
the  stock  of  those  around,  but  by  fresh  accessions  to  the 
public  stock,  then  the  capital  of  the  country  is  unmistake- 
ably  increased.  What  the  agriculturist  receives  in  return 
for  that  portion  of  his  grain  consumed  at  home,  is  a  mere 
transfer  of  so  much  of  the  nation's  capital,  from  the  pockets 
of  his  countrymen  to  his  own ;  but  if  we  put  our  produce 
into  the  silks  of  Lyons  or  Spitalfield,  into  the  cottons  of  Man- 
chester, or  the  shawls  of  Paisley,  at  an  advantage  of  a  half 
or  quarter  more  than  if  we  had  produced  these  foreign 
fabrics  for  ourselves,  thed  a  bona  fide  addition  has  been 
made  to  the  nation's  wealth.  Our  labor  has  been  more  pro- 
ductively employed,  and  we  are  moving  in  the  way  of  social 
progress. 

.  We  have  seen  that  this  theory  cannot  be  assailed^  on  the 
ground  that  native  industry  must  be  sustained,  and  every- 
thing as  far  as  possible  produced  by  ourselves.  That  is 
retrogression,  and  constitutes  labor,  and  not  wealth,  as  the 
end  to  bo  attained.  On  such  a  principle,  every  mechanical 
and  scientific  improvement  is  an  injury  to  the  working  man, 
in  so  far  as  it  tends  to  diminish  manual  labor,  and  if  logical- 
ly followed  out,  we  would  scratch  the  ground  with  a  stick, 
in  preference  to  plowing ;  "  the  sail  would  proscribe  steam,  the 
oar  proscribe  the  sail,  and  the  oar  in  turn  give  way  to  the 
wagon,  and  the  wagon  to  the  pedlar  and  the  hand  cart."  To 
that  extremity  the  most  zealous  tariff  man  would  not  commit 


■ir )  ■ 


V 


TRADE  OF  UNITED  STATES  AND  ENGLAND. 


67 

— + 


as ;  but  that  is  the  absurdity  to  which  his  theory  leads.  Like 
a  writer  on  political  economy,  he  would  not  begin  where 
others  left  the  subject,  come  up  boldly  to  the  point  where 
thought  and  work  were  needed }  but  blander  on  at  the  veij 
threshold;  seek  to  ignore  the  experience  of  the  past,  and 
invite  the  United  States  to  pass  through  the  same  commer- 
cial phase  that  England  has.  England's  present  conimercial 
strength  and  greatness,  is  owing,  it  is  said,  to  the  zealous 
care  with  which  she  watched  her  infant  industry,  and  it  is 
inferred,  that  to  lead  to  a  like  result,  the  United  States  and 
Canada  have  to  do  the  same.  They  have  to  forego  the  pre- 
sent, that  the  prospects  of  the  future,  by  an  enlarged  and 
more  skillful  development  of  textile  manufacture,  may  be 
improved. 

.  That  specious  reasoning  has  been  conclusively  overthrown. 
It  has  been  said  that  the  wheat  received  in  store  in  Chicago, 
costs  the  farmer  on  an  average  twenty-five  cents  a  bushel,  and 
on  an  average  of  years,  that  wheat  is  sold  in  Chicago  at  a 
dollar.  A  profit  of  three  times  the  amount  of  cost  is  therefore 
realized,  and  if  the  whole  population  of  the  United  States 
under  like  circumstances  were  engaged  in  growing  wheat, 
that  advantage  would  be  gained,  and  that  advantage  would 
provide  the  means  of  building  cotton  factories,  or  of  doing . 
anything.  On  the  other  hand,  we  have  said  the  advantage 
of  the  United  States  in  the  production  of  heavy  cottons,  is 
equal  to  ten  per  cent.,  and  the  finer  fabrics  can  only  be  pro- 
duced under  the  eegis  of  protective  duties.  Labor  so 
bestowed,  instead  of  realizing  the  three-fold  advantage  to  be 
derived  from  the  growth  of  wheat,  only  realizes  ten  per  cent, 
in  one  department,  and  is  a  tax  and  incubus  on  the  public 
wealth  for  the  remainder,  and  yet  it  is  alleged  that  a  system 
so  feeble,  if  not  effete,  wants  only  a  little  fostering  care,  to 
enable  it  to  clothe  the  world.  That  is  logic  with  a  vengeance ; 
th»  old  bugbear  of  pauper  labor,  putting  the  hardy  work- 
man and  the  skilled  handicraft  into  the  workhouse.  Is  it 
from  the  man  doing  a  paying  business  that  good  ultimately 
is  to  be  looked  for  ?  or  from  the  man  doing  no  good  at  all, 
but  if  an)  thing,  losing  ground  every  day  ?    It  is  so  with  a 


68 


THEOBT  AND  PBACTICB  OF  THE 


nation,  and  with  the  United  Qtates.  There  is  no  reason  why 
we  should -take  the  early  programme  of  the  British  People, 
but  there  is  much  to  be  said  in  favor  of  our  taking  things  as 
we  find  them,  and  turning  our  great  resources  to  the  best 
account ;  and  if.  the  accumulation  of  wealth  is  our  aim  and 
end,  we  will  foster  those  interests  only  in  which  our  advan- 
tage is  the  most. 

We  have  seen  further,  that  our  export  trade  is  contingent 
on  our  continuing  to  ^receive  foreign  products.  The  moment 
our  import  trade  shall  decline,  our  export  trade  shall  decline 
also ;  and  if  the  country  should  ever  come  to  consume  such 
things  only  as  it  produced.  Western  prairies  would  return  to 
their  former  wildness,  and  Southern  negroes  cease  to  be  worth 
their  board.  The  United  States  would  not  hold  business 
communication  with  the  world,  and  if  the  Eastern  manfac- 
turer  had  become  rich  and.  increased  in  goods,  it  would  be 
in  the  complete  prostration  of  every  other  interest  within 
the  country.  We  can  never  get  but  one  commodity  for 
another,  and  gold  and  silver  are  but  commodities  after  all ; 
and  in  proportion  as  we  cease  to  take,  we  must  also  cease  to 
give.  To  that  result  the  Socialist  Tariff  system  leads,  anri, 
civilization,  together  with  the  interest  of  the  West  and 
South,  and  the  Eastern  mass,  have  a  common  interest  to  keep 
it  down. 

The  present  tariff  of  the  United  States,  not  as  bearing  on 
England  only,  but  upon  the  different  trading  communities  of 
the  world,  does  not  present  any  serious  barrier  tq  the  prose- 
cution of  almost  any  kind  of  trace,  while,  at  the  same  time, 
it  provides  a  margin,  for  the  home  producer,  of  foreign  . 
competing  products.  We  receive  incredible  quantities  of'' 
the  produce  and  manufactures  of  every  country,  and  as 
incredible  quantities  of  our  produce  and  manufactures  are 
sent  abroad.  The  trading  theory  of  the  country  is  essen- 
tially, therefore,  that  of  buying  in  the  cheapest  market,  and 
selling  in  the  dearest,  and  under  that  regime  we  are  making 
unparalleled  advancement  in  the  creation  of  those  utilities 
and  ccynforts  known  as  wealth.  That  policy  may  still 
further  be  ameliorated  by  a  diminution  of  the  duties  on 


\ 


TRADE  OF  UNITEO  STATES  AND  ENGLAND. 


^9 


ir.i' 


foreign  imports,  and  cannot  possibly  be  reversed.  People 
have  pretty  much  outgrown  their  fears  as  to  the  influence  of 
abundance  on  their  temporal  state,  and  have  began  to  th^nk 
that  if  cheaper  living  and  cheaper  dry  goods  leave  the  W(kk- 
ing  man  more  to  spend  on  other  things,  and  individually  is  a 
blessing,  it  must  be  a  blessing  also  to  the  nation.  People 
have  begun  to  enlarge  their  view  of  social  questions,  and  to 
look  more  beyond  the  narrow  lines  of  particular  interests, 
and  to  question  the  claims  of  these  upon  the  sympathies  of 
the  mass.  The  method  of  incomplete  truths  is  no  longer 
recognized,  and  questions  of  economy  are  more  brought  to 
the  general  money  making,  or  the  general  money  losing  test. 
We  are  less  used  to  be  taken  in  with  the  cry,  that  the  exces- 
sive importations  of  foreign  dry  goods,  and  other  things, 
have  closed  our  Eastern  factories  and  worshops,  and  thrown 
the  operatives  and  their  families  upon  the  streets,  and  to  call 
upon  the  delegation  of  the  State  at  the  seat  of  government 
to  support  a  revision  of  the  tariff ;  but  when  these  appeals 
are  now  made  to  us,  we  give  the  question  a  personal  applica- 
tion, and  think  it  no  hardship  that  we  can  buy  our  coats  and 
waistcoats  cheaper,  and  then  we  think  of  the  high  price  of 
local  services,  and  of  the  millions  of  acres  of  unbioken 
prairie  that  invites  the  industry  of  man  to  break  its  thin, 
grassy  crust,  in  the  rudest  way,  and  it  will  reward  his  labor 
a  thousand  fold.  We  begin  to  think  that  if  the  working 
man,  or  the  capitalist,  chooses  to  turn  his  back  upon  the 
resources  of  the  country  that  remain  undeveloped,  and  will 
not  adapt  himself  to  surrounding  circumstances,  but  seeks  to 
develope  industries  which  necessarily  are  mora  or  less  effete, 
he  has  no  claim  upon  public  sympathy,  and  no  moral  or  legal 
right  to  seek  the  enactment  of  a  protective  poor  law,  that  he 
may  make  his  living  at  the  expense  of  others ;  aud  in 
these  opinions  we  are  both  practically  and  theoretically  in 
the  right.  Freedom  of  action  and  of  thought ;  every  man 
working  his  own  way  along,  and  none  legally  supported 
at  the  expense  of  others  unless  all  partake  equally  and 
justly  of  the  service  that  is  performed,  are,  and  should 
always  be,  the  watchwords  of  the  freemen  of  a  great  and 
free  country. 


70 


theobY  and  pbaotiob  of  the 


The  trade  between  the  United  States  and  England  is, 
therefore,  practically,  in  a  free  condition,  and  what  ob- 
stacles there  are  have  locn  created,  as  much  with  the  view 
of  raising  revenue,  as  of  affording  pi;otection  to  native  indus- 
try. The  United  Stfttes  freely  exchange  their  natural 
advantages  for  the  acquired  advantages  of  England,  and 
each,  by  the  interchange,  derives  the  benefit  of  the  advan- 
tages of  the  other,  as  fully  as  if  they  were  their  own.  The 
United  States,  for  esample,  not  only  receive  the  manufac- 
tured cottons  of  Manchester,  at  a  trifling  addition  to  the 
cost  of  transportation  from  and  back  to  their  own  territory, 
but  receive  the  benefit  of  the  greater  economy  in  working 
up,  and  of  the  minimum  return  for  the  use  of  manufacturing 
capital;  The  benefit  of  improved  English  machinery,  cheap 
capital  and  cheap  labor,  are,  therefore,  acquired  as  fully  and 
substantially  by  the  United  States,  as  if  Manchester,  with  all 
its  advantages,  were  located  within  their  territory ;  the 
transportation  charges  being  almost  an  inappreciable  quan- 
tity. But  the  United  States  not  only  receive  the  full  measure 
of  these  advantages,  but  by  virtue  of  their  advantage  in  the 
cultivation  of  the  soil,  whose  products  they  use  in  exchange, 
they  receive  English  manufactures,  at  a  further  reduction  of 
the  net  profit  on  the  grain  or  cotton  which  they  have  given 
in  exchange.  Take  our  previous  illustration.  Chicago 
wheat,  on  an  average,  costs  the  producer  twenty-five  cents  a 
bushel,  or  one  shilling  sterling  per  60  lbs.,  and,  on  an 
average,  that  wheat  is  sold  in  Chicago  at  a  dollar  a  bush^ 
or  four  shillings  sterling  per  60  lbs. ;  consequently,  a  reduc- 
tion, equal  to  three  times,  the  cost  of  the  wheat  exchanged,  is 
made  from  the  English  market  value  of  the  cottons  that  are 
received.  The  United  States,  by  virtue  of  their  advantage  in 
the  growth  of  wheat,  not  only,  therefore,  bring  Manchester 
practically  within  their  own  territory,  but  derive  advantages 
which  would  not  really  follow,  were  Manchester  actually 
located  in  the  United  States.  Supposing  that  the  manufac- 
ture of  cottons  were  as  far  advanced  in  Massachusetts,  as  it 
is  in  England,  and  that  the  price  of  manufacturing  labor  and 
capital  were  the  same,  still  the  result  of  these  conditions 


It 


V 


TRAOB  OF  UMITBD  STATBB  AMD  BNOLAKD. 


71 


would  not  give  an  equivalent  return  to  vested  capital  in  the 
growth  of  wheat  in  Illinois,  and  present  advantages  would 
not  be  realized.  We  would  supply  ourselves  witii  manuf&o- 
tures  at  a  greater  cost  than  we  at  present  have  them ;  the 
nation  would  not  accumulate  useful  products  or  wealth  so 
rapidly  as  it  at  present  does  ;  but  to  flatter  a  class  of  capi- 
talists and  operatives,  we  would  employ  them  in  one  way 
rather  than  in  another,  although  in  that  way  our  advantages 
were  the  least. 

England,  on  the  other  hand,  in  buying  wheat  from  the 
United  States,  brings,  practically,  our  prairies  to  her  own 
'door,  inasmuch  as  she  receives  our  wheat  on  the  same  terms 
as  she  has  her  own ;  and,  for  the  same  reason,  that  it  is  more 
profitable  for  the  United  States  to  import  manufactures,  it  is 
more  profitable  for  England  to  import  breadstoffs,  as  in  the 
growth  of  these  her  advantage  is  less  than  in  manufactures. 
England  is  no  more  destitute  of  soil  on  which  to  plant  ind 
sow,  that  her  population  may  eat  their  own  bread,  and  be 
independent  of  their  neighbors,  than  are  the  United  States 
destitute  of  skill  and  capital  to  manufacture  for  their  wants ; 
I  at  England  has  intelligence  to  know  that  her  fields  are 
better  wild  and  unreclaimed,  that  her  manufacturing  suprem- 
acy may  be  preserved ;  and  the  free,  untrammelled  trade  of 
England  is  an  example  which  the  world  must  sooner  or  later 
follow. 

The  principal  articles  of  United  States  exportation  to  the 
United  Kingdom,  are 

Specie,  Flour, 

Cotton,  Wheat, 

Tobacco,  Corn. 

The  principal  articles  of  United  States  importation  from 
the  United  Kingdom,  are 


Beer  and  Ale, 

Steel, 

Coals, 

Sheets  and  Nails, 

Cottons, 

Lead, 

Earthenware, 

Tin, 

Haberdashery, 

OilSee4, 

Hardware, 

Salt, 

72 


THEORY  AND  PBAOTTOE  OP  THE 


Linens,  Silks, 

Iron,  Pig,  Stationery, 

f  Bar,  Woollens,  Cloths, 

Oagt,  Mixed  Stuffs, 

Wrought,  Worsted  Stufis. 

England  admits  five  of  theso  principal  articles,  duty  free, 
into  her  ports,  and  imposes  a  specific  duty  on  tobacco. 
That  duty  is  three  shillings  sterling  per  pound,  or  say  seven- 
ty-five cents  a  pound,  on  unstemmed  tobacco ;  and  nine  shil- 
lings sterling  per  pound,  or  say  two  dollars  and  a  quarter 
per  pound,  on  manufactured  tobacco,  or  cigars. 

The  United  States  charge  a  duty  on  all  thes«  principal 
articles  of  import :  ranging  from  fifteen  per  cent,  on  lead, 
to  twenty-four  per  cent,  on  iron,  cotton,  silk  and  woollen 
manufactures,  ad  valorem. 

England  admits  these  principal  articles  of  United  States 
growth,  in  the  way  she  does,  for  the  following  reasons.  It 
was  long  ago  found  impracticable  and  vicious  to  tax  the  pre- 
cious metals,  and  by  the  consent  of  all  nations,  and  the  ne- 
cessity of  their  money  systems,  these  metals  are  exempt  from 
fiscal  burdens.  Haw  cotton  was  early  recognized  as  a  manu- 
facturing necessity,  and  is  not  even  named  on  the  tarifif.  It 
was  conceived  that  to  tax  that  commodity  was  to  raise  the 
price  both  at  home  and  abroad,  and  by  wise  forethought 
the  manufacture  was  let  alone.  It  was  placed  under  no 
restriction,  and'no  bounties  nor  other  fostering  stimulants  were 
extended  to  it,  and  subsequently  withdrawn,  but  it  worked  its 
way  unheeded,  on  its  own  merits  only,  and  from  the  begin- 
ning to  the  present  day,  every  mechanical  improvement  has 
gone  to  make  the  cost  of  the  product  less,  and  to  increase 
consumption  more  and  more.  Breadstuff's  were  viewed  in 
another  light,  and  treated  in  another  way.  It  was  supposed 
to  be  impolitic  to  rely  on  Europe  for  a  supply  of  breed,  and 
on  the  cessation  of  the  war,  the  agricultural  interest,  like 
every  other  interest,  suflfered  from  the  recoil  in  values ;  and 
that  interest,  and  the  statesmen  of  the  day,  saw  no  hope  of 
safety,  but  in  the  ex  elusion  of  the  cheaper  food  of  neighbor- 
ing countries,  and  the  paying  of  a  higher  price  to  the  home 


1.11 


^  :ii 


\ 


TRADE  OF  UmTID  STATER  AND  ENGLAND.  78 

J. 

producer,  that  in  his  greater  wealtl  the  commiinity  might 
recruit  their  shattered  fortunes.  Here,  it  was  argued,  we 
are  sending  money  abroad  for  grain,  which  might  be  kept  at 
home,  to  the  infinite  advantage  of  us  all.  Oive  it  rather  ito 
our  own  farmers,  and  they  will  provide  labor  to  the  unem- 
ployed, and  the  laborers  will  buy  from  the  shopkeeper,  and 
the  shopkeeper  from  the  manufacturer,  and  trade  throughout 
the  length  and  breadth  of  the  country  will  be  revived.  That 
line  of  argument  prevailed,  and  it  was  only  within  the  last 
few  years,  that  the  English  Com  Laws,  to  the  infinite  benefit 
of  landlord,  and  farmer,  an'  consumer,  were  annulled  for- 
ever. During  their  existence,  agriculture  made  no  progress, 
and  bread  was  dear,  without  the  landlord,  in  some  localities, 
deriving  more  than  half  the  rent  he  now  does,  and  without 
the  farmer  earning  more  than  an  easy  living.  Since  their 
abrogation,  agriculture  has  become  a  science,  and  rotation  of 
crops,  top  dressing,  artificial  manuring,  sub-soil  ploughing, 
and  stock  raising,  have  taken  the  place  of  the  time-honored 
practices  of  the  old  English  farmer,  and  in  the  increased  pro- 
ductivenesE  of  the  soil,  and  the  improved  quality  of  the  crops, 
the  farmer's  return  is  greater  than  what  it  was ;  and  while 
he  pays  his  landlord  a  higher  rent,  he  brings  more  stuff  to 
market,  and  diminishes  to  all  the  cost  of  living. 

It  is  not  necessary  that  we  should  make  any  further  expo- 
sure of  the  fallacy  involved  in  the  principle  of  the  English 
Corn  Laws,  as  that,  in  fact,  has  been  done  already.  We  have 
seen  that  the  cheapest  market  is  the  best  to  buy  in,  inasmuch 
as  the  outlay  for  a  specific  object  is  reduced,  and  more  of  the 
individual  or  national  capital  is  left  for  investment  in  other 
things.  We  have  seen  fiirther,  that  a  high  price  of  bread  is 
sooner  or  later  accompanied  by  the  prostration  of  every  other 
interest  but  the  agricultural ;  and  we  have  seen  that  m'oney 
was  of  less  account  to  a  community  than  loaves  of  bread.  If 
a  specific  quantity  of  money,  circulating  throughout  the  coun- 
try, were  only  needed  to  bring  every  comfort  to  every  door, 
and  to  banish  misery  from  the  social  state,  there  would  have 
been  some  intelligence  manifested  in  the  wish  that  money 
should  not  be  sent  abroad,  but  under  the  English  Com  Law, 


r  BOBT  AND  PBACnCE  OF  THB 


kept  at  home,  to  enrich  the  English  farmer,  that  he  might  be 
the  bettor  able  to  give  employment  to  the  laboring  poor  ;  and 
the  world  would  have  learned  a  lesson  not  to  bo  forgotten : 
but  money  has  no  such  charm,  and  in  its  growing  abundance, 
there  is  reason  rather  for  uneasiness  and  alarm.  One  condi- 
tion of  every  mercantile  revulsion,  in  the  history  of  the  world, 
has  been  the  existence  of  too  much  money ,  and  one  invariable 
condition  of  recovery  from  commercial  difficulty,  has  been 
the  practical  limitation  of  the  supply  of  gold  and  silver  and 
paper  bills.  Such  being  the  case,  it  is  wonderful  that  Eng- 
land, under  the  onerous,  self-imposed  obstacle  of  the  Com 
.Law,  made  the  material  progress  that  she  did  in  manufactures 
and  other  things ;  and  her  manufacturing  and  social  develop- 
ment since  the  abrogation  of  that  enactment,  is  the  most  con- 
vincing testimony  of  the  expansive  and  beneficial  influence  of 
domestic  and  international  trading  intercourse  being  let 
alone. 

The  United  States  admit  these  principal  articles  of  Eng- 
lish manufacture,  with  the  two-fold  purpose  of  raising  rev- 
enue, and  giving  moderate  protection  to  native  industry. 
With  the  principle  of  the  first  named  object,  this  inquiry  has 
properly  no  concern,  as  government  being  instituted  for  the 
common  good,  must  in  some  way  or  other  be  supported  from 
the  common  wealth,  but  it  is  within  our  province  to  indicate 
the  influence  which  these  imposts  exercise.  This  will  be  best 
accomplished  by  illustration.  Supposing  ten  barrels  of  Lon- 
don porter,  costing  ten  dollars  each,  or  a  hundred  dollars  in 
all,  are  landed  in  New  York ;  that  there  is  no  duty  charged 
by  the  United  States  on  the  commodity ;  and  that  the  aver- 
age profit  in  the  porter  trade  is  ten  per  cent. :  then  the  im- 
ported article  goes  into  consumption  at  eleven  dollars  per 
barrel ;  and  a  family,  consuming  one  of  those  per  annum,  has 
so  much  taken  from  its  income,  and  so  much  less  left  for  in- 
vestment in  other  things.  Under  these  circumstances,  there 
would  be  free  trade  in  London  porter;  the  selling  price 
would  be  as  low  as  possible,  and  the  greatest  possible  induce- 
ment, as  a  consequence,  held  out  to  consumption  in  the  United 
States.    The  shipper  of  London  porter  from  Liverpool,  would 


TRADB  OF  UNITED  STATES  AND  ENGLAND, 


76 

— V- 


experience  the  most  active  demand  that  he  could  look  for, 
and  would  invest  to  an  equivalent  extent  in  the  produce  of 
thi9  United  States.  If  this  trade  wore  lot  alone,  it  would 
lead,  of  course,  to  the  creation  of  a  class  of  porter  drinkers, 
and  if  placed  under  restriction,  these  drinkers  would  have 
to  pay  a  higher  price ;  or  in  part  give  up  the  indulgence,  if 
not  altogether ;  or  take  to  something  else.  Three  alterna- 
tives, therefore,  present  themselves,  if  we  shall  say,  a  twenty- 
five  per  cent,  duty  is  imposed,  and  the  price  of  a  barrel  of 
porter  raised  from  eleven  dollars  to  thirteen  dollars  and  a 
half.  The  question  then  is,  which  of  those  alternatives  shall 
be  chosen  by  the  porter  drinkers.  If  obsei-vation  were  ad- 
missible as  to  •  the  consumption  of  other  things,  when  the 
price  was  raised  by  the  imposition  of  a  duty,  the  conclusion 
would  bo,  that  a  large  falling  off  in  the  demand  would  at 
once  follow.  Less  London  porter  would  be  purchased,  les(^ 
imported,  and  less  American  produce  shipped  to  Liverpool. 
There  would  absolutely  be  less  consumed,  and  the  insoluble 
questions  remain  unanswered,  whether  some  would  thereby 
cease  drinking  altogether,  and  whether  some  would  take  to 
drinking  something  else.  One  class  of  thinkers  may  be  said 
to  hold,  that  consumption,  to  a  certain  extent,  would  cease 
absolutely,  as  it  was  the  mere  love  of  London  porter,  by 
itself,  that  induced  the  purchase,  and  parties  would  not  neces- 
sarily indulge  in  other  drinks ;  and  another  class  of  thinkers 
may  be  said  to  hold,  that  another  kind  of  drink  would  neces- 
sarily take  the  place,  of  the  discarded  London  porter,  and 
the  aggregate  liquor  consumption  be  kept  up  to  its  former 
standard. 

This  view  of  the  porter  case,  places  in  a  striking  light,  the 
question  of  free  trade  or  protection,  while  showing,  at  the 
same  time,  the  influence  of  taxation,  in  diminishing  the  con- 
sumption of  particular  articles.  It  is,  perhaps,  no  great  mis- 
representation of  the  free  trade  theory  to  say,  that  the  effect 
of  taxation,  even  for  government  purposes,  is  to  diminish 
consumption  absolutely,  as  it  so  far  constitutes  an  absorption 
of  the  national  income,  and  leaves  less  to  be  employed  by  the 
people ;  and  the  positive  doctrine  of  the  protection  school  is 


76 


THEORY  AND  PRACTICE  OP  THE 


mm 


w^ 


!;:':-ii 


this,  that  cousumption  is  not  diminished  hj  duties  on  foreign . 
products,  but  on  the  contrary,  that  consumption  passes  fully 
from  the  foreign  to  the  domestic  article.  The  doctrint;  essen- 
tially is  this ;  that  in  the  porter  case,  consumers  to  the  full 
extent  of  the  falling  off  in  demand  for  porter,  will  go  upon 
lager  beer,  and  the  home  manufacturer  be  benefited  to  the 
full  extent  that  the  business  of  the  foreign  shipper  is  cur- 
tailed. This  may  be  so,  but  probability  is  quite  as  strong  the 
other  way ;  and  if  we  shift  the  issue  from  articles  of  drink 
to  articles  of  manufacture,  we  shall  find  the  rule  absolute,  in 
favor  of  the  theory  of  free  trade.  Would  it  not,  indeed,  be 
a  high  tariff  that  would  induce  American  ladies  to  discard 
the  products  of  the  looms  of  Lyons,  or  Spitalfield,  for  the 
calico  drapery  of  Massachusetts  ?  or  to  induce  the  merchants 
and  mechanics  of  the  United  States  to  substitute  the  hodden 
gray  of  Providence,  for  West  of  England  broadcloth,  and  the 
stuffs  of  Bradford?  Scarcely  any  amount  of  protective  duty 
would  lead  to  the  substitution  of  the  one  article  of  diess  for 
the  other ;  but  in  proportion  as  the  duty  was  high  or  low, 
would  people  be  disposed  to  wear  their  clothes  a  longer  or 
shorter  time.  Protective  duties  may  fall  short,  therefore,  in 
inducing  the  consumption  of  one  article  for  another,  and  pro- 
tectionists may  be  running  after  an  ignuus  fatuus.  People 
may  be  found  who  would  not  drink  at  all,  if  London  porter, 
Portugal  wine.  East  India  sherry,  or  Cognac  brandy,  could 
not  be  had ;  just  as  people  may  be  found  who  would  wear 
faded  silks  and  satins,  and  threadbare. broadcloth  coats  and 
pantaloons,  if  they  could  not  always  afford  to  show  off  and 
wear  the  full  pile  and  finish  of  the  loom. 

So  far,  then,  as  articles  of  luxury  are  concerned,  a  pro- 
tective tariff  is  a  great  mistake,  as  unless  domestic  products 
have  some  distinctive  relish  or  attraction,  of  their  own,  no 
relish  or  attraction  can  possibly  be  given  to  them,  by  hedging 
up  more  closely  such  articles  as  are  inherently  possessed  of 
such  qualities ;  and  we  have  seen  already  that  in  proportion 
as  a  protective  tariff  lin^its  the  importation  of  foreign  pro- 
ducts, it  necessarily  imposes  a  check,  also,  upon  exportation 
of  domestic  products  to  foreign  parts  j  international  trade,  in 


TBADE  OF  UNITED  STATES  AND  ENGLAND. 


77 


in 


Low, 

or 
in 


the  long  run,  being  nothing  more  than  the  balancing  and 
paying  of  one  commodity  with  another.  There  is  an  assign- 
able and  defined  limit  for  the  business  of  a  nation,  and  that 
limit  for  the  year  will  be  found  in  the  annual  values  pf 
exported  and  imported  articles,  and  if  more  or  less  has  been 
done  in  one  direction,  more  or  less  has  necessarily  been  done 
in  another ;  e£fort  being  essentially  circumscribed ;  and  the 
question  of  the  comparative  accumulation  of  national  wealth, 
would  be  determined  on  the  one  principle,  whether  the 
national  energies  had  been  exerted  in  the  direction  in  which 
the  national  advantages  were  the  most. 

The  question  of  advantage,  on  theoretical  grounds,  is, 
therefore,  the  one  for  the  United  States,  as  it  is  for  England 
and  other  countries.  A  nation,  like  an  individual,  would 
find  its  energies  best  bestowed  on  those  pursuits  which  yielded 
the  most  return,  and  in  exact  proportion  as  it  devoted  itself 
to  productive  or  unproductive  objects,  would  be  its  progress 
in  the  accumulation  of  those  utilities  known  as  wealth.  But 
while  strict  abstract  theory  would  turn  every  country  and 
people  to  the  most  utilitarian  use,  it  must  be  confessed  that 
it  is  applicable,  in  a  limited  sense  only,  to  society,  as  at 
present  constituted  in  this  country  and  in  England.  People 
are  not  so  much  led  to  the  choice  of  investments,  or  occupa- 
tions, by  the  mere  return  which  these  will  yield,  as  by  the 
current  of  individual  association  and  desire.  A  man  is  not 
unfrequently  a  banker,  or  ship-owner,  or  merchant,  just 
because  his  father  was  one  before  him,  and  the  current  of  his 
thoughts  are  in  that  direction,  irrespective  of  the  great  profits 
of  western  farming,  or  any  other  thing.  He  chooses  to  invest 
his  capital  and  make  his  living  in  a  particular  kind  of  way, 
and  if  he  pays  his  debts  and  fulfills  the  duties  of  a  good  citi- 
zen, no  one  has  a  word  to  say.  Another  man  may  take  it  into 
his  head  to  import  silk  worms,  or  tea  plants,  and  begin  the 
production  of  silk  or  tea ;  and  if,  by  the  experiment,  he  loses 
all  ho  had,  the  loss  may  concern  no  one  but  himself,  and 
should  not  properly  excite  remark.  In  the  same  way  a  man 
in  Massachusetts  may  begin  the  manufacture  of  laces  or  of 
sewed  musliu  goods,  although  his  profit  would  be  really 


78 


THEORY  AND  PRACTICE  OF  THE 


\m 


M.! 


greater  to  send  money  across  to  Glasgow  and  bring  similar 
articles  of  Scotch  and  Irish  manufacture  ;  and  for  the  same 
reason  that  people  in  the  United  States  will  be  found  to  buy 
Yankee  notions,  although  they  could  buy  other  and  better 
notions  cheaper,  so  people  will  be  found  in  England  to  give 
a  preference  to  American  flour  over  flour  of  English  manu- 
facture, and  to  the  vertu  of  any  country  but  their  own. 

It  is  the  same  in  skilled  or  manual  labor.  It  is  the  agree- 
ableness  of  an  occupation  that  determines  the  choice  of  one ; 
the  facility  of  its  being  learnod  that  weighs  with  another ; 
the  steadiness  of  employment,  the  trustworthiness,  or  the 
probability  of  success,  that  decides  the  fate  of  others.  Little 
attention  is  given  to  the  abstract  question  of  the  advantage 
of  the  country,  in  one  pursuit,  compared  with  another,  but 
each  individual  acts  agreeably  to  his  humor,  leaving  theory 
and  the  nation  to  mind  themselves. 

We  are,  therefore,  to  look  for  the  growth  of  manufactures 
and  the  development  of  mechanical  art  in  the  United  States, 
as  well  as  in  England ;  and  we  are  not  to  suppose,  that  some 
time  or  other,  agriculture  will  cesise  to  be  prosecuted  in  the 
British  Islands.  That  would  be  an  idle  expectation,  although 
theoretically  the  interests  of  both  countries  point  in  that 
direction.  England  will  continue  to  produce  the  great  bulk 
of  the  breadstuffs  which  she  consumes ;  and  every  year  will 
add  to  the  manufacturing  productions  of  the  United  States, 
and  to  the  opening  up  of  new  sources  of  mineral  wealth ;  but 
it  does  not  follow  that  the  United  States  is  to  manufacture  on 
cheaper  terais  than  England  can,  nor  that  England,  with  all 
the  appliances  of  art  >:)  its  soil,  will  succeed  in  growing 
wheat  as  chuap  as  wheat  is  grown  on  the  virgin  prairie  of 
Illinois.  It  is  not  in  the  nature  of  things,  as  at  present  con- 
stituted, that  these  consequences  would  bo  brought  about, 
even  by  the  aid  of  protective  duties,  and  when  protection  is 
advocated,  the  utmost  measure  of  its  influence  should  be 
understood.  The  United  States  may  protect  its  native  indus- 
try, and  by  that  means  exclude  foreign  products,  and  from 
the  pockets  of  the  people  build  up  a  powerful  manufacturing 
interest  within  its  borders ;  but  after  years  of  fostering  care. 


TRADE  OF  UNITED  STATES  AND  ENGLAND. 


79 


the  capital  locked  up  in  buildings,  and  the  capital  available' 
for  buyiLg  raw  material,  and  paying  wages,  would  bear  but 
a  faint  comparison  with  that  existing  in  the  English  Midland 
District ;  and  producing  cost,  as  it  is  to-day,  would  still  be 
against  the  United  States.  English  supremacy  in  that  depari- 
ment  would  still  relatively  be  the  same,  and  the  race  of  man- 
ufacturing competition  not  less  hopeless  than  it  is ;  and  as 
England,  as  we  have  said  already,  did  not  found  the  science 
of  agriculture  until  after  the  abrogation  of  the  Corn  Law,  so 
may  the  manufacturing  interests  of  the  United  States  make 
less  real  progress,  behind  the  shade  of  protective  duties,  than 
with  an  open  field  and  no  favor.  It  seems  to  be  a  principle 
of  human  nature,  to  proportion  effort  to  some  specific  end, 
and  if  that  end  is  more  easily  attained  by  extraneous  circum- 
stances, then  effort  is  proportionately  abridged,  and  the 
result  precisely  similar  to  what  it  was  before  the  influence  of 
extraneous  circumstances  was  brought  intooperation. 

It  is  to  be  observed  further,  that  however  abstractly  right 
and  proper  it  may  be  for  the  unemployed  in  the  cities  of 
the  United  States,  to  scatter  themselves  upon  the  western 
prairies  and  turn  their  services  to  the  best  account,  and  there 
is  a  strong  influential  current  of  public  opinion  setting  in,  in 
that  direction,  still  the  friends  of  real  progress  must  feel 
satisfied  that  the  associations  and  the  humor  of  the  class 
must  be  considered,  and  their  usefulness  made  available  in 
their  own  peculiar  way.  Chicago,  for  example,  may  have  a 
special  natural  adaptation  for  an  agricultural  and  trading 
centre,  and  manufacturing  may,  abstractly,  be  the  least 
profitable  thing  that  her  citizens  can  put  their  hands  to ;  but 
the  associations  of  the  great  mass  lie  in  that  direction,  and  if 
in  following  these  pursuits,  the  return  and  wages  of  labor 
were  less  than  in  those  departments  in  which  the  advantage 
of  the  city  were  the  most,  still  the  operatives  would  be  not 
less  pleased  and  satisfied.  It  seems  as  if  the  resolution  of 
the  immigrant,  as  to  adapting  himself  to  the  circumstances  of 
the  country,  breaks  down  when  he  reaches  his  destination, 
and  that  he  seeks  to  devote  himself  to  the  same  habits  and 
pursuits  in  which  he  indulged  at  home.    The  necessity  of 


80 


THBOBT  AND  PBaGTIOB  OF  THE 


" 


1  ,    1^ 


If    \s 


using  this  class  is,  therefore,  forced  upon  a  city  and  a  coun- 
try, and  there  is  no  doubting,  that  if  more  of  the  capital  of 
the  citizens  of  Chicago  had  been  devoted  to  the  employment 
of  reproductive  labor,  and  less  to  building  costly  stores  and 
private  dwellings,  that  the  present  circumstances  of  the  city 
and  the  people  would  have  been  much  better  than  they  are. 

One  of  the  most  practicable  ways  of  turning  the  attention 
of  the  working  class  to  prairie  life,  and  weeding  out  old 
world  habits  and  associations  from  their  minds,  is  in  the 
better  regulation  of  the  sale  of  public  lands.  As  things  are, 
whole  tracts  of  country  pass  into  the  hands  of  corporations 
and  jobbers,  and  a  positive  check  is  imposed  upon  the  agri- 
cultural settlement  of  the  country ;  and  until  a  positivo  legal 
limit  is  placed  upon  the  price  of  prairie  land,  as  formerly  and 
is  still  placed  upon  the  price  of  money,  no  real  compaiative 
progress  will  be  made.  If  the  principle  of  such  a  law  is 
good,  in  the  case  of  money,  it  must  be  good  in  the  case  of 
land,  which  more  concerns  the  interests  of  this  Western  cocn- 
try,  and  is  subject  to  more  abuse. 

Passing  from  these  prE^clical  considerations,  the  comparar 
tive  advantages  of  England  and  the  United  States,,  in  the 
production  of  the  principal  articles  of  export,  from  the 
former  to  the  latter,  forms  the  proper  subject  of  comparison 
and  remark.  Those  articles,  exported  from  the  United 
States  to  England,  may  be  dismissed  without  further  com- 
ment, as  it  may  bo  presumed,  Eagland  will  not  aspire  to 
produce  them  for  herself ;  while  with  respect  to  the  former, 
there  is  a  strong  desire  manifested,  in  the  United  States,  to 
develope  the  manufacture  of  those  commodities  receivt  .4  from 
England,  with  the  view  equally  of  supplying  the  domestic 
trade,  and  competing  with  England  in  foreign  markets,  in 
the  sale  of  these  articles.  The  wages  of  labor  we  take  from 
the  compendium  of  the  census  of  the  United  States,  and 
from  Porter's  Progress  of  the  British  Nation,  official  author- 
ities rf  the  same  date  and  value : 


\im, 


TRADE  OP  UNITBD  STATES  AND  ENGLAND. 


81 


UNITED  STATES. 

_ L_ 

ENGLAND. 

Massachusetts 
Cotton  Spinning. 

Carpenter 

Laborer. 

Manchester 
Cotton  Spinning. 

Carpenter 

Laborer 

MAIiB. 

TEMAIS. 

XALB. 

TBHALB. 

$6.75 

$8.40 

•8.70 

$6.64 

92.90 

•3.05 

•9.64 

•1.93 

£l3a'8d 

14« 

£116«10d 

£17* 

12ff 

886d 

10«  6d 

8s 

These  are  average  weekly  wages,  and  the  reason  why  a 
la^  orer  is  ^  lid  more  in  Massachusetts  than  a  cotton  spinner, 
is  to  be  found,  probably,  in  the  fact  that  the  one  is  steadily 
employed,  and  the  other  employed  only  at  uncertain  intervals. 
On  the  subject  of  wages  in  the  United  States,  the  compen- 
dium, (p.  164,)  has  the  following :  "  The  Commissioner  of 
Patents  in  1848,  sent  out  a  circular  to  all  the  States  in  order 
to  ascertain  the  rates  of  wages  paid  by  the  agricultural 
interest.  Answers  were  received  from  most  of  the  States, 
which  showed  a  remarkable  uniformity.  The  average  wages 
per  month  to  field  laborers,  with  board,  ranged  from  $10  to 
$15  for  the  whites,  and  from  $5  to  $12  for  the  slaves ; 
the  average  for  female  domestics,  with  board,  ranged  from 
$4  to  $6  for  the  whites,  and  $3  to  $5  for  the  slaves.  The 
average  wages  of  mechanics  from  75  cents  to  $1.50  per  day, 
reaching  in  Texas  as  high  as  $3.  dpon  the  whole,  the  rates 
seemed  to  be  lowest  in  the  North- West  and  highest  in  the 
South- West  for  white  labor,  the  South  and  the  North  differ- 
ing but  very  little." 

Since  1850,  wages  in  the  United  j,te8  hare  advanced 
trom  twenty-five  to  fifty  per  cent. ;  but  consequent  on  the 
revulsion,  are  again  on  the  decline,  and  considering  the 
difficulty  that  exists  generally  in  getting  work,  and  the  still 
greater  difficulty  in  getting  paid,  the  average  this  Spring,  is 
not  greater,  if  in  reality  as  high,  as  in  1850 ;  while  in  many 
parts,  the  cost  of  living  has  fully  doubled.  In  England, 
wages  have  also  advanced  since  1850,  and  are  again  on  the 
decline,  but  the  cost  of  living  there,  is  much  less  than  it  then 
was,  and  the  same  money  rate  of  wages  would  be  equal  to 
6 


82 


THBOBT  AND  PBACTICB  OF  THE 


I 


H 


f  ii  i 


!■ 


considerable  advance.  Duties  have  been  reduced  largely,  on 
many  of  the  prime  necessaries  of  life,  and  the  benefits  of  im- 
proved production,  in  articles  of  dress,  have  been  fully 
realized,  while  house  rents  are  the  same. 

It  seems  then,  as  nenr  an  can  be,  that  labor  is  twice  as 
dear,  in  the  United  States,  as  ii  is  in  England,  and  a  com- 
parison of  equal  numbers  of  the  working  class  of  both  coun- 
tries, would  indicate  a  pretty  close  resemblance  in  the  social 
state  of  both.  The  Massachusetts  laborer,  although  receiving 
0  greater  equivalent  than  the  Manchester  laborer,  for  the 
same  service,  has  more  t  j  pay  for  almost  every  article  ^at 
he  cousamcs  and  wears,  and  as  a  general  thing,  the  rents  of 
workmen's  dwellings  ece  from  ten  to  twenty  times  cheaper 
iii  England  than  in  the  United  States.  Laborer's  dwellings 
can  be  had  in  the  one  country  at  from  $5  to  $25  yearly, 
while  in  the  other  from  ^50  to  $100,  is  the  rate.  The  best 
proof,  perhaps,  of  the  relative  cust  of  iiviDg,  is  in  the  official 
fact  that  the  average  weekly  board,  to  a  laboring  man  in 
Massachusetts,  in  1850,  was  $2.12^  while  at  the  same  period 
the  weekly  wages  of  a  working  man  in  Manchester,  was 
$1.93  only,  and  it  is  well  known,  that  from  that  pittance,  the 
laboring  class  in  England  can  afford  to  raise  a  numerous 
family.  Here,  in  Chicago,  where  the  greatest  primary  col- 
lection of  grain  is  made  annually,  and  where  usually  the 
market  price  of  wheat  is  just  half  what  it  is  in  England, 
bakers'  bread  is  really  dearer  than  bakers'  bread  in  London, 
and  what  is  more,  the  quality  is  bad,  and  this  is  owing 
wholly  to  the  high  renting  and  high  service  paying  system, 
which,  of  course,  are  merely  other  names  for  a  depreciation 
in  the  purchasing  power  of  money.  If  fifty  cents  provide 
in  one  community,  what  a  hundred  cents  provide  in  another, 
the  condition  of  the  laborer  receiving  fifty  cents  is  precisely 
similar  to  that  of  the  laborer  receiving  twice  the  sum,  but 
people  seldom  realize  the  force  of  that  truth  until,  under 
different  circumstances,  the  experiment  has  been  tried. 

Considering  that  labor  enters  largely  into  the  producing 
cost  of  manufactures,  and  that  the  tendency  of  wages,  in  the 
United  States,  is  to  advance  further,  as  the  North-West  be- 


TRADE  OF  UNITIID  STATES  AND  EKGLAND. 


88 


'K 


)T 


le 


comes  settled  and  opened  up ;  and  that  wages  in  England 
have  a  tendency  to  decline,  as  the  country  becomes  more 
'  densely  peopled,  England  eiyoys  an  advantage  in  manufoo- 
tores  not  enjoyed  by  the  United  States,  and  the  same  in]  kind 
as  that  ei\joyed  by  the  latter  in  the  growth  of  wheat.  The , 
English  laborer  does  tbie  same  measure  of  labor  as  the  Amer- 
ican laborer  does,  and  is  paid  half  the  price  that  the  Ameri- 
can  Iftborer  is,  and  the  product,  so  far  as  labor  is  concerned, 
is  produced  with  an  advantage  of  a  half  in  favor  of  the  Eng- 
lish manufacturer.  Under  such  circumstances,  competition  on 
the  part  of  the  United  States  is  absurd,  and  as  well  may 
England  talk  of  competing  with  the  United  States  in  the 
growth  of  wheat.  It  cannot  possibly  be  done,  and  no  course 
or  period  of  protective  policy  would  avail,  unless  in  the  one 
case,  accompanied  by  a  forcible  reduction  of  the  price  of 
manufacturing  labor,  and  in  the  other  case,  accompanied  by 
sufficient  organic  changes  in  the  formation  of  the  soil. 

To  buy  the  articles  in  England  that  we  do,  is,  therefore,  to 
buy  in  a  cheaper  market  than  our  own ;  and  apart  altogether 
from  the  fact  that  if  we  are  to  send  commodities  abroad,  we 
must  necessarily  receive  commodities  in  return,  the  import  of 
these  commodities,  on  the  principles  of  common  sense  and 
daily  individual  practice,  would  be  advantageous  to  the  mass. 

The  theory  of  the  trade  of  the  United  States  and  England 
may  b3  said,  therefore,  to  consist  in  the  recognition  of  the 
mutual  benefit  to  be  derived  from  the  international  exchange 
of  those  commodities  in  which  the  natural  or  acquired  advan- 
tages of  each  country  is  the  most ;  and  by  the  practice  of  the 
trade'of  the  United  States  and  England,  the  mere  mechanism 
of  the  trade  is  to  be  understood ;  and  to  this  latter  we  now 
proceed. 

The  great  bulk  of  the  trade  of  the  United  States  and  Eng- 
land is  conducted  by  middlemen  or  brokers.  In  New  York 
and  other  leading  ports  there  are  a  few  large  importing  houses, 
having  connections  with  the  English  manufacturers,  ans 
these  houses  receive  orders  from  their  constituents  through 
out  the  United  States,  and  consignments  from  England,  to  bo 
realized  on  account  of  the  English  manufacturers.    Besides 


84 


THIOBT  AND  PRAGTIOB  OF  THE 


f 


■,iv 


,  J. — 

-( 

*? 

'  V 

Itlll 


this  class,  there  is  another  in  a  less  influential  position,  who, 
with  banking  facilities  on  the  spot,  are  enabled  to  appoint 
agents  or  representatives  of  themselves  in  the  leading  ^English 
towns,  and  these  agents  hunt  up  consignments  to  their  princi- 
pals, who  in  turn  fill  orders  received  in  England  from  American 
produce  dealers.  Precisely  the  same  system  obtains  in  Eng> 
land.  There  are  a  few  heavy  importing  houses,  supplying  . 
their  customers  throughout  the  country,  and  receiving  %tuff 
on  consignment  from  American  shippers ;  and  a  few  heavy 
exporting  houses,  giving  advances  to  English  manufacturers, 
and  making  consignments  to  thei^  friends  in  New  York  and 
elsewhere.  There  are  also  the  smaller  class  of  men  who  do 
much  the  same  thing  in  a  smaller  way,  operating  more  on 
business  knowledge  than  on  means.  Considering  the  magni- 
tude of  the  interests  involved,  amounting  last  year  to  an  aggre- 
gate official  valuation  of  $216,600,000,  of  exports  and  im- 
ports, it  would  seem  that  interference  is  calculated  to  inflict 
as  much  harm  in  the  United  States  as  it  possibly  could  cure. 
These  heavier  United  States  and  English  firms  transact 
the  bulk  of  the  exchange  business  of  the  two  countries,  and 
a  moment's  consideration  of  the  intimate  relations  that  sub- 
sist between  them,  gives  a  clue  to  the  otherwise  inexplicable 
subject  of  buying  and  selling  bills,  and  sending  and  receiving 
the  precious  metals.  These  firms  may  draw  on  their  corres- 
pondentl  at  the  other  side,  and  if  the  exchange  or  draft  is 
considered  good,  it  can  be  sold  upon  the  market,  and  if  the 
parties  drawn  on  do  not  already  hold  property  against  the 
draft,  property  is  at  once  transmitted,  and  no  possible  irregu- 
larity suffered  to  occur.  The  property  transmitted  may  be 
either  produce,  or  gold  or  silver,  as  the  drawer  of  the  draft 
may  consider  most  advantageous  to  himself.  Exchange  bro- , 
kers,  who  of  course  are  understood  not  to  trade,  cannot  avail 
themselves  of  the  privilege  of  shipping  produce  to  their  cor- 
respondents, and  in  the  event  of  no  bills  being  offered  on  the 
market,  they  have  no  choice  but  to  ship  specie  against  their 
drafts.  In  this  way,  for  example,  a  banker  in  Chicago  draw- 
ing on  Liverpool,  and  selling  the  exchange,  applies  to  his  cor- 
respondent in  New  York  for  a  bill  on  London  of  equal  value, 


m 


TRADE  OF  XPmm  BTATBEf  AND  KNOLAND. 


86 


r 


to  reimbane  the  firm  he  drew  upon,  and  in  the  event  of  no 
sterling  bills  being  offered,  his  correspondent  has  no  alterna- 
tive but  to  transmit  specie.  All,  therefore,  that  a  G^ioago 
banker  has  to  do  to  enable  him  to  draw  on  Europe,  is  'to  get 
authority  from  an  English  banking  house,  and  that  is  procured 
through  a  satisfactory  introduction;  and  the  authority  is 
gran^d  on  the  understanding  that  drafts  will  be  accomparied 
by  collaterals  covering  the  amount.  The  practise  is  the  same 
from  the  other  side ;  and  shows  how  little  the  theory  of  the 
balance  of  trade  has  to  do  with  the  subject. 

Besides  bankers*  or  credit  drafts,  there  are  those  protected 
by  property,  and* known  as  document  or  hypothecated  bills, 
and  through  the  instrumentality  of  the  one  or  the  other,  inter- 
national transactions  are  settled  up.  The  first  are  based  on 
satisfactory  mercantile  or  banking  credit,  and  consists  in  a 
house  of  known  character  or  a  banker  of  known  responsi- 
bility giving  assurance  that  for  a  specific  purpose,  he  will 
accept  the  drafts  of  so  and  so,  according  to  a  given  tenor. 
These  bills  are  known  as  credit  bills,  and  in  some  markets  are 
more  easily  negotiated  than  the  other.  The  other  class  of 
bills  are  based  on  an  absolute  hypothecation  of  the  property, 
to  the  party  who  buys  the  exchange,  and  the  buyer  holds  the 
bills  of  lading,  the  title  to  the  property,  until  the  bills  are 
paid.  A  large  proportion  of  the  export  trade  of  the  United 
States  to  England,  is  done  in  this  last  named  way,  and  it  is 
in  fact  the  only  way  in  which  people,  unless  people  of  the 
first  standing,  can  operate  at  all,  A  Liverpool  or  Glasgow 
agent  sends  out  his  orders  to  New  York,  and  the  New  York 
house  buys  the  stuff  free  on  board  and  draws  against  Liver- 
pool or  Glasgow  for  the  total  shipment.  To  these  bills  he 
"attaches  the  bills  of  lading  and  the  insurance  policy,  and  sells 
them  in  Wall  Street  to  the  best  account.  The  bills  and  docu- 
ments then  cross  to  Liverpool  or  Glasgow,  and  the  agent 
drawn  on,  if  necessary,  values  on  the  paities  to  whom  the 
stuff  was  ordered,  and  applies  the  proceeds  to  the  release  of 
the  hypothecation.  In  England,  the  system  of  hypothecation 
does  not  obtp^in,  it  being  a  rule  with  bankers  there,  to  decline 
all  business  i^  which  there  is  not  full  confidence  in  all  the 


86 


THEORY  AND  PBAOTIOB  OF  TBI 


parties.  Shipments  to  the  United  States  are,  therefore, 
drawn  for  on  the  credit  principle,  and  the  United  States 
receive  what  are  iknown  to  the  trade  as  clean  bills  of  lading ; 
that  is,  the  bills  of  lading  are  under  no  hypothecation,  bat 
give  absolute  possession  of  the  property  without  limitation  of 
any  kind.  To  this  practice  the  development  of  English  trade 
is  largely  owing,  and  so  long  as  English  traders  have  the 
privilege  of  doing  business  on  credits,  while  other  nations  are 
trammeled  with  hypothecation,  they  will  largely  influence 
the  supply  of  every  market. 

To  prosecute  trade  between  the  United  States  and  England, 
or  between  any  one  section  of  the  world  and  another,  no  diffi- 
culty exists,  if  parties  are  possessed  of  means.  A  man  with 
wheat  in  Chicago  can  ship  that  wheat  to  Liverpool,  and  instead 
of  waiting  until  his  wheat  reaches  there  for  the  release  oi^  his 
capital,  he  can  put  himself  in  communication  with  the  repre- 
sentative of  an  English  firm  in  New  York  city,  or  with  an 
American  firm,  having  a  house  in  Liverpool  or  London,  and 
on  consigning  his  wheat  to  these  parties,  he  can  at  once,  in 
Chicago,  receive  nine-tenths  of  the  market  value  as  advance, 
and  receive  the  balance  when  the  stuff  is  sold.  In  that  way, 
any  one  can  send  stuff  to  any  market  and  receive  at  once  a 
large  proportion  of  the  value  in  his  hand.  Li  much  the  same 
way  anything  is  to  be  had  direct  from  abroad  by  a  man  pos- 
sessed of  means,  whether  those  means  are  in  the  form  of 
merchandise  or  money.  He  can  import  the  stuffs  of  Brad- 
ford, the  cottons  of  Manchester,  the  wines  of  Portugal,  the 
coffee  of  Brazil,  the  tea  of  China,  or  nearer  home  the  sugars 
of  Cuba.  He  has  simply  to  secure  his  banker,  and  the  banker 
will  clear  the  way  for  him  to  embark,  either  in  the  import 
or  export  trade  with  any  nation.  He  will  arrange  it  so,  that 
no  money  will  require  to  be  paid,  until  the  desired  property 
or  its  title  is  actually  received ;  and  so  that  on  any  export 
shipments  liberal  advances  shall  be  received. 

Supposing  a  Chicago  firm  desires  to  establish  business  with 
a  firm  in  Liverpool,  and  to  make  wheat  and  corn  shipments  by 
the  St.  Lawrence  route,  it  is  not  necessary  for. the  Chicago 
firm  or  the  firm  in  Liverpool  to  have  an  equiv^i^ent  amount  of 


TRAMB  OF  UMmD  STATB  AMD  WOLAIID. 


cash  in  hand  against  the  shipments.  Nothing  more  is  needed 
than  that  the  firm  in  Liverpool  get  their  banker  to  pat  up 
oredit  for  them  in  London,  that  is  to  say,  get  a  London  banker 
to  express,  in  writing,  his  readiness  to  accept  the  Ghicago 
drafts,  either  on  presentation,  with  documents  or  without 
them,  and  that  agreement  of  the  London  banker  will  com- 
mand cash  in  anticipation  in  New  York  city.  Gash  in  New 
York  city  is,  of  coarse,  easily  controlled  in  Ohicago,  and 
,  thus  the  shipments  would  be  made  without  any  cash  in  hand 
by  the  Ghicago  firm,  and  tho  payers  of  the  shipments  would 
be  the  parties  in  New  York  to  whom  the  exchange  was  sold. 
That  exchange  would  go  on  to  London,  and,  according  to 
the  arrangement  of  the  London  banker,  he  would  pay  the 
money. 

'](ntemational  trade  is,  therefore,  as  intelligible  and  as 
capable  of  being  conducted  with  as  little  capital  as  business 
is  at  home.  Nothing  more  is  needed  bat  an  intelligent 
banking  system,  that  will,  at  least,  not  be  afraid  to  le'^d  its 
credit  under  produce  hypothecation,  until  the  hypothecation 
shall  have  been  released  in  New  York  or  Montreal ;  and  a 
banking  system  without  intelligence  and  promptitude  for  that 
is  good  for  nothing,  and  an  obstacle  to  something  better 
being  instituted  in  its  place. 


Nora. —It  U  vary  geMrally  suppoted  tli*(  while  Bnglaad  pnuehta  frM  tnd«  to  all  the 
world,  the  proteota  her  own  manuiketaiee  by  high  proteoUre  datlee.  Thst  U  limply  % 
mistake,  »nd  the  fbllowing,  from  the  Britlab  ftnd  American  TiffUb,  will  let  the  matter  flnaUy 
atreit:— 


BBITISH  TABITF. 
1858. 
C6tton  Uuinflwtiiies— 
From  India,  /r*e. 

From  other  parts,  6  per  eent.  on  value. 
811k  Hanuftctures— 

From  Oolonlea,  6  per  cent,  on  value. 
From  other  parts,  15  per  cent,  on  nine. 
Fartiealar  styles  at  lower  rates. 


1TKITBD  STATES  TABIFF. 
1868. 
Cotton  Mannlhntnres — 

24  per  eent.  on  value. 

Silk  Manulltotuie»— 

19  per  cent,  on  value. 


bh 

>y 


IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


1.0 


■^  Uii    |2.2 

1.1   l.'^'Ka 


iimsEi 


-  '  ^    ■  ■    ■; 

IIL25   lU    11.6 

" 

^ 

6"     

► 

Photographic 

Sdences 

Corporation 


23  WEST  MAIN  STREET 

WEBSTER,  N.Y.  14580 

(716)872-4S03 


.^ 


<^ 


\ 


^ 

'^ 


o 


y 


88 


THBOBT  AND  ?BACnCB  OP  THE 


The  following  tables  embrace  the  aggregates  of  the  United 
States  and  British  trade  from  1857  back  to  1850,  as  borne 
on  the  Trade  and  .^avigatioi^  returns  of  the  United  States : 


EZPOBTB  VBOM  THI  T} 

.s.„ 

IXFORTS  IHTO  TH>  U.  S. 

1857. 

Total  to  all  parts, 
"     to  Britain, 

$338.9 
182.6 

1857. 

Total  from  all  parts,  $360.8 
"    from  Britain,     130.8 

1856. 

Total  to  all  parts, 
"     to  Britain, 

$310.5 
160.7 

1856. 

Total  from  all  parts,  $314.6 
''    from  Britain,     122.2 

1855. 

Total  to  all  parts,, 
"     to  Britain, 

$246.7 
133.9 

1855. 

Total  trow.  aU  parte,  $261 .4 
"    from  Britain,     106.5 

1854. 

Total  to  all  parts, 
"     to  Britain, 

$252.0 
139.1 

1854. 

Total  from  aU  parts,  $301 .4 
'<    from  Britain,     146.4 

1853. 
1852. 
1851. 

Total  to  all  parts, 
"     to  Britain, 

Total  to  all  parts, 
"     to  Britain, 

Total  to  all  parts, 
"     to  Britain, 

$213.4 
117.8 

$192.3 
64.3 

$196.6 
110.0  ' 

1853. 
1853. 
1851. 

Total  from  all  parte,  $267.9 
"    fromBritfdn,     130.2 

Total  from  all  parte,  $20848 
"    from  Britain,       90.6 

Total  from  all  parte,  $216.2 
"     from  Britain,       93.8 

1850. 

Total  to  all  parts, 
"     to  Britain, 

$136.9 
68.6 

1850. 

Total  from  all  parte,  $178. 1 
"    from  Britain,       75.1 

Non.— Tba  flgniM  abore  axe  millloiu  and  dadinal  nurti  of  mUUoni :  thns  $888.9  iMda 
§888,000,000,  and  M  on. 

The  importance  of  the  British  trade  to  the  United  States 
may  be  gathered  from  the  following  statement  of  the  exports 
to  British  Possessions  in  1857,  as  compared  with  the  total 
exports  of  the  country : 


1857. 


Total  Expobtb  fbom  U.  S. 

Domestic  Frodaoe $338.9 

Foreign        "        23.9 

$362.8 
222.6 


Total  U.  S.  Exfobts  to  Bbitibb 
F0BBBS810RS. 

Domestic  Produce $214. 7 

Foreign         "        7.9 


$222.6 


Leaving        $140.2,' 

Exported  elaewhete  than  Brittih  PoMMdona. 


Total  Ihpobtb  or  U.  S. 

From  all  Cotmtries $360.8 

168.5 


Total  U.  S.  Impobtb 
From  British  Possessions. .  .$168.5 


Leaving        $202.3, ' 

Imported  ftom  other  parts  than  BriUah  Poneealou. 


TBADB  OF  UNITED  8TATHB  AND  ENGLAND. 


89 


In  round  numbers,  therefore,  England  and  her  depen^en^ 
cies  take  two-thirds  of  our  gross  exports,  and  w.e  receive  less 
;than  half  of  our^imports  from  England  and  her  dependencies. 

The  position  of  the  trade  of  England  to  our  o^  is 
brought  out  also  by  the  following  figures : 


1867, 
Total  Bbitish  Expobts 
ToallparU £122.1 


19.1 


Total  Bbitiih  Expobts     , 

To  United  States. £18.7 

"  California 4 


Leaving       £103.0, 
Britldi  «zportB  to  parU  othef  than  the  Valted  StitM. 


£19.1 


Nora.— VlM  flguw  aboTO  mo  milUoni  rad  dvolnul  parti  of  Billleafl  ;  thai  #123.1  loadi 
tm,100,0(IO. 


CHAPTER    IV. 


THEOBT  AND  PRAOTIOfi  OF  THE  TBADE   OF  THE  UNITED  STATES 

AND  CANADA. 

% 

Canada  is  at  present  agitated  by  au  influential  protection 
movement,  and  a  commercial  rapture  is  warmly  advocate4 
between  the  Province  and  the  United  States.  There  seems 
to  be  a  difference  of  opinion,  both  in  Canada  and  in  the  United 
States,  as  to  whether  the  one  country  or  the  other  has  gained 
the  most  by  the  Treaty  of  Reciprocity,  and  it  is  maintained 
that  unless  the  balance  is  to  be  held  even,  the  country  whose 
advantage  is  the  least,  should  cut '  the  connection  and  take 
things  its  old  way  again. 

That  seems  the  easiest  way  of  settling  up  the  matter,  but  a 
perusal  of  the  Treaty  of  Reciprocity,*  at  the  close  of  this 
chapter,  will  show  that  there  are  more  than  two  to  the  bar- 
gain making.  England,  and  not  Canada,  is  the  contracting 
party  with  the  United  States,  and  the  abrogation  of  recipro- 
city lies  solely  and  alone  with  the  United  States,  and  that 
only  after  the  English  government  shall  have  excluded  Amer- 
ican vessels  from  Canadian  waters.  Even  after  that  unlikely 
action  on  the  part  of  England,  the  United  States  may  prolong 
the  trade  untilone  year  after  1864,  when  England  shall  have 
notified  the  United  States,  of  her  wish  to  discontinue  the 
free  interchange  of  the  free  produce. 

Without  entering  furtiier  into  that  matter,  those  more  imme- 
mediately  interested  in  the  dispute  might  be  asked,  by  what 
means  they  are  to  determine  the  delicate  question  of  the  rela- 
tive benefit  derived  by  the  United  States  and  Canada  in  the 
reciprocity  or  other  trade.  How  is  one  thing  or  another  to 
be  made  out  about  it,  in  the  face  of  the  fact  that  either  trade 
is  voluntary,  and  never  undertaken  without  a  motive  ?  Then, 
is  it  reasonable  to  suppose,  that  if  the  western  trade  were 


TRADB  OF  imiTED  BTATBB  Aim  tlMADA. 


91 


to 
de 


profitless :  if  it  were  liOthing  for  Oanada  to  hare  the  produce 
<of  lUinois,  and  for  Buffalo  and  Oswego  to  have  the  wheat  of 
Western  Canada,  that  Canada  and  New  York  would  make 
their  present  efforts  to  divert  the  whole  western  carrying 
business  into  their  respective  channels  ?  It  is  not  likely ;  and 
that  fact  should  effectually  sUence  the  present  outcry. 

Looked  at  from  a  disinterested  point  of  view,  the  CajfiB.- 
dian  protection  movement  is  a  mere  resuscitation  of  old- 
fashioned  notions,  precisely  as  inapplicable  to  this  continent 
as  to  any  other,  all  off-hand  assertions  to  the  contrary  not- 
withstanding. .  In  the  first  place  it  is  alleged,  that  present 
■  business  stagnation  in  Canada  arises  from  excessive  importa- 
tions of  foreign:  manufactures,  and  from  an  undue  proportion 
of  the  population  being  engaged  in  agricultural  pursuits.  In 
the  second  place  it  is  alleged,  that  under  the  Treaty  of  Reci- 
procity with  the  United  States,  Canada  receives  more  than  it 
gives,  and  as  a  consequence,  is  ctarjivl^  on  a  disadvantageojis 
and  exhaustive  trade.  That  last  statement  is  based,  of 
course,  on  the  assumed  soundness  of  the  theory  of  the  balance 
of  trade,  and  beingiM),  has  already  been  fully  answered  in 
the  opening  chapter.  A  nation,  like  an  individual,  is  bene- 
fited by  what  it  gets,  and  impoverished  by  what  it  gives,  and 
if  the  United  States  keep  Canadian  shops  and  warehouses 
full  to  overflowing,  and  are  chary  in  taking  Canadian  produce 
in  return,  Canada  should  be  the  last  to  be  dissatisfied,  and  to 
make  a  noise.  Supposing,  as  is  not  unfrequently  the  case, 
that  Canadian  merchants,  in  good  standing,  buy  too  freely  in 
New  York ;  in  fact,  have  cottons,  woollens,  hardware,  drugs, 
groceries  and  such  things,  forced  upon  them  to  an  extent  out 
of  all  safe  proportion  to  their  trading  capital,  and  out  of  all 
proportion  to  the  wants  of  the  customers  they  design  to  serve. 
That,  says  the  protectionist,  creates  a  balance  against  Canada, 
which  balance  must  be  paid,  and  the  New  York  firm,  dealing 
in  such  articles,  does  not  touch  produce  of  any  kind,  but 
must  be  paid  in  coin,^  or  what  is  all  the  same ;  and  hence  the 
impoverishment  of  the  people,  and  the  derangement  of  busi- 
ness matters. 

But  it  is  notorious  that  all  the  purchases  made  by  Canada 


92 


THEOBT  AND  PBAGTICB  OP  THE 


W 


in  the  United  States  are  not  paid,  no  more  than  are  fdl  the 
parchases  made  by  the  United  States.  There  are  such 
circumstances  ai^  commercial  failures  and  assipments,  and 
sometimes  there  are  no  payments  made  at  all ;  and  in  exact 
proportion  as  a  merchant  buys  beyona  his  capital,  or  beyond 
his  ability  to  exchange  the  purchased  article  into  other  things, 
he  incurs  the  risk  of  being  unable  to  pay  his  way.  Sup- 
pose then,  that  a  Canadian  merchant  has  bought  excessively 
in  New  York,  and  is  unable  to  pay  his  notes  when  these  mar 
ture,  whether  has  Canada  or  the  United  States  profited  by 
the  operation  ?  Is  it  any  advantage  to  Canada  to  receive 
merchandize  which  has  not  to  be  accounted  for,  and  any  ad- 
vputage  to  Canadians  to  buy  imported  bankrupt  stock  below 
its  value  ?  The  advantage  is  equivalent  precisely  to  the  mar- 
ket value  of  the  goods,  no  matter  what  the  goods  have  sold 
for.  So  much  has  been  added  to  the  general  stock  of  useful 
products,  without  equivalent  being  taken  in  exchange,  and  to 
the  extent  that  Canada  has  gained,  the  United  States  have 
lost. 

A  glance  at  the  January  report  a#  Douglas'  New  York 
Commercial  Agency,  for  the  years  1856  and  1857,  shbws  that 
the  Canadian  failures  for  the  period  have  been  considerable, 
and  as  a  consequence,  have  added  materially  to  the  wealth 
of  the  Province  ;  one  half  or  more  of  the  liabilities,  no  doubt, 
being  due  to  New  York.    The  statement  is  as  follows : 

Failures  in  Canada  from  Dee.  26,  1855,  to  Dec.  25,  1857. 


CANADA  WEST. 


Toronto, 
Province, 


31 


r 


389 
8,444 


8,8SS 


FAILUBBd. 


B 


25 
109 


134 


£2,714,000 
2,172,000 


£4,886,000 


CANADA  EAST. 


FaI'-.ttbbb. 


1 

1 

£523,000 
1,267,000 

15 
15 

£1,790,000 
4,886,000 

80 
134 

Totals £6,676,000 


164 


909 
1,764 


2,673 


Montreal 
Province 


V 


TBADB  OF  UNHBD  STATES  AND  CANADA. 


9» 


Taking  in  oonneotion  with  these  figores,  that  while  the 
exports  of  the  United  States  to  Oanada,  are  in  the  main,  sold 
on  time,  those  of  Canada,  to  the  United  States,  are  in  the 
main  sold  for  cash,  the  conolusion  is  irresistible,  that  Oanada 
has  the  batter  pretty  much  on  its  own  side,  and  ruin  under 
such  circumstances  is  absurd.  If  Canada,  as  a  general  thing, 
does  nt>t  give  credit,  but  as  a  general  thing  takes  it,  and  is 
delinquent  to  the  above  named  extent,  in  the  space  of  two 
years,  it  is  inconceivable  that  present  prostration  there  has 
anything  to  do  with  importations  from  the  United  States,  or 
from  other  parts.  Besides :  the  number  of  bankruptcies,  in 
two  years,  only  bears  the  proportion  of  a  sixteenth  to  the 
whole  number  of  existing  stores,  a  relation  which  even  were 
the  number  of  bankruptcies  a  proper  test  of  the  conditiqp  of 
a  country,  would  not  account  for  the  condition  in  which  the 
Province  is.  Some  other  connection  of  effect  and  cause  must 
be,  therefore,  looked  for,  than  that  imj^ed  in  the  receipt  of 
property  which  is  retained  and  never  paid.  Obviously  a  reci- 
pient is  no  worse  off  after  receiving  goods  than  he  was  before, 
but  his  position  is  so  far  improved,  and  so  is  the  position  of 
the  community  in  which  he  lives.  An  addition  has  been  made 
to  the  aggregate  of  useful  products  or  of  wealth,  and  no  pos- 
sible difficulty  or  embarrassment  can  result  from  such  a  cause. 
If  difficulty  were  sought  for  fti  connection  with  such  a  case,  it 
would  be  found  undoubtedly,  on  the  side  of  the  sender,  who 
had  parted  with  something  for  which  no  return  had  been 
received.  Supposing  an  English  capitalist  died,  bequeathing 
to  Canada  a  million  of  dollars'  worth  of  ready  made  and 
other  clothing,  would  a  mercantile  revulsion  be  apprehended, 
after  the  bequest  had  been  received  ?  and  what  practical  dif- 
ference to  Canada  if,  instead  of  a  bequest,  two  or  three  Mon- 
treal clothesmen  bought  a  million  dollars'  worth  of  clothing 
in  New  York,  and  give  notes  for  the  amount,  which  were 
never  paid  ?  The  position  of  Canada  in  either  case  would  be 
the  same ;  it  would  be  one  million  dollars'  worth  more  wealthy 
than  it  was  before,  and  if  it  chose,  might  reship  the  clothing 
to  England  or  New  York,  and  draw  its  market  price  at  the 
time  of  sale  in  the  precious  metals.    Such  is  trade,  and  such 


94 


TBIOBT  AND  PRAOTICV  OF  TBI 


tha  unoomproEiising  dcmditimi  of  an  old  protection  dnam. 
Ihnery  basmeii  man  is  awaEe,  that  eoali  will  be  sent  to  New- 
oaetle  if  thtty  oauwi  be  sent  elsefwhere,  by  the  needy  trader, 
and  that  even  these  coals  are  oonTortible  into  coin,  and  oomc^ 
seqaently  are  as  goodas  gold.  • 

Another  twami  for  Oanadiui  diffioolty,  is  the  alleged  nndne 
proportion  of  the  popolation  «igaged  in  agricnltnre.  At  the 
recrat  meeting  of  {n-oteotion  ddegates  in  Toronto,  Canada 
West,  the  bane  of  t^e  Province  was  broadly  stated,  to  be  its 
agricoltore ;  and  Ifr.  Isaac  Buchanan,  a  member  of  the  Pro-' 
vincial  Parliament,  and  a  merchimt  in  Hamilton,  thus  spoke 
of  the  uncertainties  and  blanks  of  the  baokwoodsnan's  life: 
**  The  farmer  was  deeply  interested  in  pio?iding  diversified 
em^pyment,  from  the  risks  attending  on  the  continued  culti- 
vation of  wheat.  First,  there  was  the  risk  of  the  ravages  of 
the  insect;  second,  there  was  the  uncertainty  of  Hie  crt^; 
and  thirds  there  were  the  chiinces  of  a  market  after  the  crop 
had  been  obtained."  Any  old  countryman,  with  a  hankering 
after  Canadian  life,  and  a  piece  of  real  estate  of  his  own,  had 
better  think  of  these  remarks,  before  he  risks  himsdf  in 
Canada,  if  Mr.  Buchanan  is  to  be  believed,  and  come  West, 
whero  there  is  no  uncertainty  sit  all,  and  where  stuff  every 
where  will  find  a  ready  market.  The  great  incentive  to  enn- 
gration  to  this  country  from  Eur#pe,  is  the  low  price  oi  land, 
its  great  productiveness,  and  the  facility  with  which  it  can  be 
reclaimed.  Not  one  emigrant  in  a  hundred  leaves  Europe, 
with  the  purpose  of  following  out  his  occupation  or  profes- 
sicm  on  this  continent,  but  all  cmne  to  be  sosiething  else,  and 
to  be  better  than  they  were,  and  whatever  change  tiieir  senti- 
ments may  undergo,  when  the  discovery  is  made  that  the 
country  of  their  adoption  differs  little  or  none  at  all,  in  its 
aspects  and  relations,  from  the  country  whence  they  came,  it 
is  an  acknowledged  fact,  that  comfort  and  competency,  in  the 
last  resort,  either  on  the  prairie  or  in  the  woods,  has  done 
the  most  to  bmvc  the  mass.  To  say  then,  that  agriculture  is 
not  worth  the  following,  that  it  impoverishes  the  farmer  and 
'the  people,  and  that  manufiEUituring  alone  builds  up  a  people 
and  a  nation,  is  at  once  to  destroy  the  inducement  which  the 


TRADB  or  UKITBD  STiffB  AND  OAVADA. 


96 


Engliih  have^  aad  to  iend  them,  dlsewhore,  if  It  does  not; 
satiifytlwiik  aifbarwardiAwHh  home.    The  delegatttatTo- 
rontoy  il  11M17  be  aafely  Baid^  did  not  wish  that  impresaioii  t» 
go  abroad,  bat  sought  only  to  make  their  irei^  oaaei  as 
atrong  as  poeaible.    They  had  made  up  their  minds  that  ma** 
ofiistariBg  ima  the  thing  for  Oanada^  and  knew,  of  eonrse, 
thai,  tiie^  new  regime  oonld  have  a  ohanee  only  when  agrienl^/ 
tnre^thfr  opposing  interest,  had  been  crashed.    All  poetry^ 
was  taken  for  the  moment,  therefore,  from  tha  oecnpatilon  of 
the  soil  in  Canada,  and  it  will  be  fortonate  herrafter,  for  the 
Province,  if  the  foolish  speeches,  at  the  foolish  Toronto 
gatherings  are  foi^otten.    Wc,  Buchanan  has  lived  to  see  his 
prise  essay  theory  of  protection  to.  native  industry  rooted 
from  tiie  minds  even  of  a  tory  English  government,  and  thai 
should  have  satisfied  him  that  his  apprehrasion  of  the  'SiA^* 
jeot  was  contracted  and  unsound ;  nnd  oomm<m  sense  diould 
have  suggested  to  his  followers,  that  there  could  but  be  one 
selence  of  wealth,  as  .there  is  but  one  of  arithmetic  or  of 
grammar.    The  English  language  differs  from  the  fVench  or 
Onrnan ;  and  Greek  and  Hebrew  have  characters  peculiar  to 
themselves,  but  the  principles  of  oompositian  and  construction 
are  pretty  much  the  same  in  all.    England  does  not  have  the> 
counterpart  of  Niagara,  or  of  many  things  tbat  tiie  United 
States  and  Canada  have  in  common ;  but  in  the  United  St,  :v.v-' 
and  Canada,  as  in  England,  two  and  two  make  four,  and  tO' 
buy  in  the  cheapest  market,  is  to  make  a  saving,  and  to  sell' 
above  cost,  is  to  make  a  profit.    On  these  plain  issues,  the 
.  science  of  political  economy  has  been  raised,  and  its  teaohr 
ings  are  not  more  positive  in  Dan,  than  in  Beersheba.    When 
the  Provincial  theorist  goes  the  length  oi  saying  that  there  is 
one  system  of  political  economy  for  England,  and  another  for 
the  United  States  and  Canada,  he  should  make  his  asserlioa 
good  by  showing  what  the  other  system  i6,  and  until  he  does 
so,  unsupported  statements  are  good  for  nothings 

We  are  free,  however,  to  admit  that  it  would  be  a  benefit 
to  Canada,  if  English  and  other  immigrants  landing  in  the 
Province,  and  not  relishing  the  idea  of  shoulderii^  the  axe, 
and  going  iiito  the  primeval  forest,  to  carve  out  a  living  in 


96 


THBOBT  AND  PBAOTIOB  OF  Tin 


the  rade,  oheerlesi  way  that  the  backwoodsman  doe«,  eoold 
settle  down  to  the  business  or  1iie*occapation  wMoh  they 
fi^owed  at  the  other  side ;  bnt  it  is  a  grievous  error  to  rap* 
pose  that  the  growA  of  Canada  is  contingent  on  all  continn* 
ing  in  the  Province  that  come  along.  It  would  be,  of  course, 
a  benefit  to  an  individual  riiopkeeper  if  all  the  people  €ii  the 
villi^  or  the  town,  made  their  purchases  at  his  store,  and  a 
benefit  to  all  diopkeepers  if  every  person  entering  within 
their  premises  bought  large  bills  of  goods ;  but  no  individual 
shopkeeper  calculates  on  having  a  monopoly  of  trade,  and 
under  competition^  it  has  not  unfrequenUy  been  found  that 
prosperity  has  been  more  sure  and  certain,  than  when  there 
was  no  inducement  to  please  and  to  display ;  and  shoidceepers 
in  general,  are  pleased  to  show  their  wares  to  a  dozen  people 
ifhappily  they  succeed  in  making  a  single  sale.  Why  should 
it  be  otherwise  with  a  new  country  ?  Why  should  people  not 
land  in  Oanada,  and  IooIe  around  them,  and  be  at  perfect 
liberty  to  leave  for  other  parts  if  they  were  not  exactly 
suited,  just  as  people  are  at  liberty  to  leave  a  tailor's  or  a 
dry  goods  store*  if  they  do  not  get  the  precise  thing  they  ask 
for  ?  Would  it  be  better  for  the  Province  to  bribe  such  to 
remain ;  or  for  the  shopkeeper  to  give  his  goods  for  nothing, 
if  no  purchases  were  made  ?  That  is  the  real  point  at  issue, 
when  laborers  and  others  are  referred  to,  as  going  from 
Canada  into  the  United  States,  and  what  protectionists  are 
drivitig  after,  is  the  offering  of  Inducements  that  tue  move- 
ment may  be  stayed.  They  have  no  confidence  in  the 
resources  of  the  country,  and  wish  to  sqpply  what  they  be- 
lieve is  lacking,  and  to  raise  tiie  superstructure  of  Canadian 
empire  on  an  artificial  basis.  Here,  they  exclaim,  we  have 
raw  material  in  abundance,  and  nothing  more  is  needed  to 
add  infinitely  to  the  population,  hut  that,  instead  of  buying 
manufactures  from  the  United  States  and  England,  we  work 
up  the  raw  material  for  ourselves.  Then,  the  Paisley  weaver 
will  make  his  home  here,  and  the  factory  girls  of  Wigan  and 
Preston  come  out  in  shiploads,  and  while  we  profit  by  the 
industry  of  these,  the  former  will  have  the  benefit  of  a  home 
market  for  his  produce.    -Canada  will  then  profit  by  immigra- 


TBAra  Of  uMiriD  mim  and  oamaoa. 


W 


tion,  and  not  be  oyenhadowed  by  Us  powerfal  neig^iboi',  but 
make  comparatively  as  rapid  strides  in  material  greatness. 

The  fisjlacy  involyed  in  that,  reasoning  ve  have  already 
noticed,  and  it  is  nnneoessaiy  to  repeat  the  demonstpatton 
here.  It  is  nothing  to  the  farmer  whether  the  market  for  his 
prodnoe  is  a  home  or  a  foreign  one,  so  long  as  he  receives  his 
payment,  dnd  it  is  nothing  to  the  consumer,  where  articles  of 
apparel  come  from,  so  long  as  he  has  them  at  a  moderate 
price ;  and  as  Canada  cannot  possibly  manufaotare  on  terms 
equivalent  with  what  manufactures  can  be  purchased  in  the 
United  States,  while  a  large  profit  can  be  realized  in  the 
growth  of  Ganadian  cereal  products,  and  in  the  preparation 
of  Ganadian  lumber  for  the  markets  of  the  United  States,  the 
growth  of  Ganada  in  wealth  will  be  in  proportion  to  t)ie 
employment  of  its  ener^es  in  the  production  of  those  0(mi- 
modities  in  which  its  advantage  is  the  greatest  or  the  least. 
If,  by  growing  wheat  or  hewii^  lumber,  Ganada  can  buy  the 
manufactured  or  imported  articles  of  the  United  States  witii 
an  advantage  of  a  half  or  fourth,  the  Province  will  make 
rapid  progress  by  devoting  itself  to  the  development  of  these 
industries,  and  leaving  weavers  and  others  to  nund  them- 
selves ;  while  if,  by  manufacturing,  Ganada  produces  manufac- 
tures at  a  higher  price  than  manufactures  could  be  purchased, 
then  Ganada  will  make  ^no  real  progress,  but  soon  be  eaten 
up  by  paupers  and  poor  laws. 

The  Treaty  of  Reciprocity  is  the  next  grievance  to  be 
noticed,  and  it  is  only  fair  to  Ganada  to  say,  that  there  is  a 
strong  feeling  in  the  United  States  in  favor  of  abrogation* 
At  the  dose  of  this  chapter,  considerable  light  is  thrown 
upon  the  sources  of  national  opinion  by  the  point  of  view 
from  which  the  protectionists  of  boA  countries  make  their 
start.  Americans  look  at  Ganadian  trade  through  the 
medium  of  their  own  returns  for  the  iiscal  year  ending 
80th  June;  and  Ganadians  look  at  United  States  trade 
through  the  medium  of  their  own  returns  for  the  fiscal  year 
ending  December  31st.  Now,  it  is  to  be  observed,  that  by 
the  30th  of  June,  Ganada  has  just  sent  its  first  rush  of  pro- 
duce through  the  Erie  canal,  and,  as  a  general  thing,  has 
7 


96 


tBIOBT  AND  PlUCnOI  Of  THB 


then  imported  liw  from  tht  Uiited  States  than  it  hM 
exported;  «nd  the  AmerioMi  diwiple  of  the  Beknce  of 
Trade  sohool  sees  mio  in  the  buiiness,  and  decides  against 
the  treaty.  The  Oanadian,  on  the  other  hand,  looks  at  the 
United  States  trade  when  the  business  of  the  year  is  over, 
and  when  the  Prorince  has  supplied  itself  fidly  from  its 
neighbor  for  the  winter  and  early  spring  trade,  and  finds 
that  the  balance  of  trade  is  most  wofhlly  against  Oanada, 
and,  forthwith,  1^  exclaims  against  the  treaty  also.  Both 
look  into  the  matter  at  different  periods,  and  at  that  time 
precisely  when  it  hi^pens  that  the  balance  is  most  against 
the  ono  conntry,  and  in  &yor  of  the  other,  and  thus  theo- 
retical error  is  perpetuated  and  sustained.  A  little  more 
intematitmal  reciprocity  in  the  article  of  toade  returns 
would  clear  up  this  matter  so  far,  and  the  departments  at 
Washington  and  Toronto,  or  Ottawtt  should  keep  this  point 
in  view  in  future.  On  the  30th  of  last  June,  the  balance  in 
fkvor  of  Oanada  and  against  the  United  States,  by  the 
United  States  Treasury  returns,  was  $1,716,989,  and  on  the 
81st  of  December  tiie  balance  in  favor  of  the  United  States 
and  against  Oanada,  by  ike  Trade  and  Navigation  returns  of 
Oanada,  was  £1,754,458  currency,  or  $7,017,812. 

The  value,  <x  rather  worthlessness,  of  the  theory  of  the 
balance  of  trade  was  inquired  into  in  one  of  the  sections  of 
the  first  chapter,  and  in  the  present  chapter  has  been 
referred  to  also,  and  will  be  taken  up  again  when  the  details 
of  the  trade  of  the  United  States  and  Oanada  come  to  be 
considered.  It  is  unnecessary,  therefore,  to  speak  of  it 
fhrther  in  this  connection,  and  a  recent  interpretation  of  the 
treaty  by  the  United  States  remains  only  to  be  noticed. 

In  the  spring  of  18i5,  when  the  Treaty  of  Reciprocity  went 
practically  into  operation,  both  tlie  United  States  and 
Oanada  considered  that  good  bargains  had  been  struck, 
and  both  conunenced  free  trading  in  a  fair  and  honest  way. 
No  obstruction  was  offered  by  either  country,  and,  for  the 
purposes  of  the  treaty,  the  United  States  and  Canada 
became  homogeneous.  Both  countries  felt  their  intereste  to 
be  identical  and  acted  in  the  most  liberal  way,  turning  a 


nuN  OP  umriD  irAnB  akd  oamada. 


deaf  ear  to  the  abrard  Mgariee  of  that  claee  in  every  eonn- 
try  whiofa  oannot,  potfiUy,  keep  paoi^  with  the  intelUgenoe 
and  progrem  of  the  time.    Wheat  and  oon  and  floor  ooald 
be  tent  from  the  United  States  to  Oanadai  and  whipti  and 
eom  and  floar  could  be  sent  fW>m  Oaatda  to  the  tjnited 
Stales,  without  qnestions  being  asked,  or  eittiilar  fMi  of  any 
kind  being  paid.    This  btate  of  trust  and  oonfidenoe  con- 
tinued until  the  spring  of  the  present  year,  1868,  when  the 
United  States  Treasury  found  it  neoessary  to  place  restrio* 
tions  upon  the  trade.    It  was  disooTered  that  under  the 
Treaty  of  Beoiinocity,  Canadian  millers,  particnlarly  in  the 
Welland  district  between  Lake  Erie  and  Lake  Ontario,  where 
the  best  water  power  on  this  o(»tinent  is  to  be  found,  were 
in  the  practice  of  drawing  supplies  of  wheat  tnm  Chicago 
and  other  pwts  in  the  United  Statee,  and  grinding  the  wheat 
into  flour,  and  afterwards  shipping  the  flour  into  the  United 
States  as  the  produce  of  the  British  Province.    Such  a  prac- 
tice, it  is  unnecessary  to  say,  was  a  breach  both  of  the  spirit 
and  letter  of  the  treaty,  and  the  United  States,  not  with  the 
Tiew  of  protecting  its  millers,  as  has  been  alleged,  as  millers 
are,  generally,  a  scarce  commodity  in  the  United  States, 
and  not  needing  the  protection  of  the  government,  but  with 
the  view  of  preventing  the  statistics  of  both  countries  from 
being  inextricably  confused,  have  made  it  obligatory  on 
shippers  of  free  produce  to  the  United  States  to  make  decla- 
ration that  such  produce  is  the  growth  and  produce  of  the 
the  British  Province.    That  is  all  that  has  been  done,  and  is 
all  that  can  be  done  by  either  country,  so  long  as  the 
treaty  remains  in  force ;  and  if  for  regularity  in  the  decla- 
rations, the  United  States  require  these  to  be  counter- 
signed by  their  own  consuls,  they  have  a  right  to  do  so, 
and  England  may  do  the  same.    Against  that  action  by  the 
United  States  the  present  outcry  has  been  raided,  althojgh, 
in  the  end,  the  tax  will  fall,  generally,  upon  the  consumer  in 
the  United  States.    As  a  general  thing,  Canada  will  advance 
the  fees  only,  and  be  reimbursed  fiilly  from  the  other  side  ; 
tiie  charges  in  Canada  adding  simply  to  the  cost  which  the 
United  States  have  to  pay. 


100 


THEO]ftT  AND  PRACTICE  OF  THE 


':*"    \ 


il 


Tho  movement  in  Canada  appears,  therefore,  to  be  at 
variance  with  the  interests  of  the  people,  and,  so  far  as  an 
abrogation  of  'the  Treaty  of  Reciprocity  is  sought,  the 
agitation  is  entirely  vain.  England  cannot  be  asked  to 
violate  her  treaty  obligations  with  the  United  States,  sind 
if  asked,  must  decline.  That  compact  will  remain  in  force, 
therefore,  until  at  least  one  year  after  1864,  and  before 
then,  it  is  to  be  hoped  that  Canadian  Tories  will  have 
learned  common  sense,  and  have  given  attention  to  something 
else.  With  respect  to  the  importation  of  manufactures,  it 
appears  that  no  difficulty  can  arise  from  that  cause,  as  manu- 
factures invariably  are  bought  on  time,  and  if  bankruptcy 
results  from  over-purchase,  the  loss  falls  upon  the  foreign  house 
who  made  the  sale.  To  check  importation,  is,  therefore,  to 
do  no  got>d,  but  to  impose  a  tax  upon  the  people  and  to 
reduce  the  amount  of  fore^  capital  which  the  people  other- 
wise might  have.  Some  other  cause  exists,  therefore,  for 
Canadian  difficulty,  and  of  its  presence  Canadians  do  not 
seem  to  be  aware.  Let  us  turn  to  the  Canadian  tables  of 
Trade  and  Navigation  for  1857,  and  single  out  a  single  item 
which,  individually,  accounts  for  a  large  proportion  of  the 
trouble. 


Total  Wheat  Imports  itUo  Canada. 

TBAB.  BCBBIU.  TAtUI. 

1855 926,000         ^£365,400 

1856 1,409,600  423,500 

1857 2,414,300  593,900 


Total  Wheat  Exports  from  Canada. 


TEAR.  BUSHBLS. 

1855 3,193,700 

1856 4,997,600 

1857 2,762,400 


TALUI. 

£1,482,200 

1,744,400 

697,400 


Excess  of  Canadian  Exports  over  Imports. 

TBAR.  BUIHILS. 

1855 2,267,700 

1856 3,676,000 

1867 348,100 


Here,  thep,  is  a  clue  to  Canadian  troubles.  The  wheat  ex- 
ports of  .Canada  for  1857  exceeded  the  imports  to  the  extent 
only  of  348,100  bushels,  while  in  1856,  the  excess  of  exports 
was  no  less  thar.  3,676,000  bushels  ;  and  it  is  to  be  observed, 
that  1867  was  by  far  the  more  prolific  year.  The  probability 
then  is,  that  not  less  than  5,000,000  bushels  of  wheat  of  ]pt 


^ 


TBADB  OF  UNITED  BTATEB  AND  0AN4f>A. 


101 


year's  growth  still  remain  in  Canadian  farmers'  hands  i  and 
the  keeping  back  of  that  value,  usually  in  circulation,  together 
with  the.  untoward  circumstances  of  the  American  and  English 
crisis,  which  necessarily  curtailed  Canadian  credit,  has  a  great 
deal  to  do  with  the  present  stat^  of  things  in  the  Province. 
The  diminished  imports  for  1857  were,  in  fact,  rather  more 
than  £1,000,000,  as  will  be  seen  from  the  following : 


Toted  Imports  into  Canada. 

TUB.  TAIVI. 

1855 .  .£  9,021,600 

1856. ; 10,896,000 

1857 9,857,600 


The  deficiency  in  wheat  sales  or  exports,  and  in  general 
imports,  was,  therefore,  little  short  of  $10,000,000 ;  quite  an 
item  in  times  of  outside  stringency;  but  we  will  hot  pursue 
the  subject  further.  Into  it,  however,  the  Toronto  delegates 
had  better  go,  that  their  conclusions  with  regard  to  the  tem- 
poral state  of  Provincial  farmers  may  be  more  accurate  than 
it  is ;  and  it  should  teach  them  also,  to  be  more  exact  in 
tracing  the  relations  of  effect  and  cause. 

The  following  were  the  articles  of  all  kinds  exported  by 
the  United  States  to  Canada  whose  aggregate  value  exceeded 
X50,000,  as  per  Canada  Trade  and  Navigation  returns,  Slst 
December,  1867 : 


ABTICLES. 

Animals 

Coal 

Flour 

Molasses 

Sugar,  other  kinds 

Tea 

Tobacco,  manufactured. 

Boots  and  Shoes 

Cotton  manufactures. . . 
Hats  and  Cans 

VALUE. 

. £114.007 
.  100.000 
.  312.758 
.  100.577 
.  384.037 
.  306.341 
.     149.057 

77.007 
.       90.789 

52.693 
.  240.316 
.     ^86.153 

63.319 

ABTICLES. 

Wood  manufactures.. . 

Woolens  ■. 

Books 

Coal  and  Coke 

VALUE. 

..  £66.223 

79.747 

91.271 

..     100.074 

.     180. 108 

..     593.643 

.       74.726 

..       94.050 

..     131.765 

..       82.900 

89.392 

..       56.719 

Indian  Com 

Wheat 

Hides 

Meats,  all  kinds 

Mess  Pork 

Settlers'  eoods ■ . . 

Iron  and  Hardware 

Leather,  tanned 

Machinery 

Tallow... 

Timber  and  Lumber.. . 

NoTi.— A  large  proportion  of  the  manufitetuiw  are  Biltiah. 

The  following  were  the  articles,  of  all  kinds,  exported  by 
Cjjinada  to  the  United  States,  whose  aggregate  value  exceeded 


102 


#TH10BT  AND  PBAGTICB  OF  THB 


£60,000,  as  per  Oanada  Trade  and  Navigation  returns,  Slat 
Deeembw,  1867 : 


▲JRTIOLU. 

Ashea,  Pot 

....  £63.567 

▲BTIOUSB. 
Wool 

Bariay  and  Byo 

....  ^67.661 
....     170.296 

Flaiik  and  Board!.. . 

BoflMS 

Cows  and  Cahref. . . 
Oxen  and  Bulb.... 

TTiilAii  and  Peltii. . . . 

....  ,689.^1 
....     104.288 
....       72.247 
...,      77.864 

Floor! .' 

Oets 

Wheafc .• 

....    881.532 

...      90,107 

....     560.128 

The  exports  froifu  the  United  States  to  Canada,  may  be 
embraced,  therbforo,  in  three  classes :  articled  of  produce ; 
articles  of  personal  consamption;  and  articles  destined  to 
promote  production.  The  -first  class  is  admitted  free  into 
Canada  under  the  Treaty  of  Reciprocity ;  the  second,  at  a 
moderate  specific  or  ad  vcUorem  duty,  and  so  with  the  third. 
The  highest  ad  valorem  duty  charged,  is  on  leather^and  India 
rubber  manu&ctures,  and  i&^  twenty  per  cent,  on  cpst.  Some 
articles,  such  as  iron  and  railroad  bars,  are  admitted  at  two 
and  a  half  per  cent. ;  o&ers,  such  as  wheels  and  axles  for 
locomotives,  pay  five  per  cent.,  and  unenumerated  articles  pay 
fifteen. 

There  is  nothing  original  or  stHking  in  this  classification, 
and  as  the  protectionists  want  to  improve  upon  it,  by  the 
imposition  of  higher  duties,  it  may  be  presumed  to  be  very 
liberal  as  things  are  in  Canada.  There  is,  however,  one,  or 
rather  two,  classes  of  items  which  appear  to  be  privileged 
more  than  others,  namely,  iron  and  railroad  bars,  and  outfit 
for  locomotives.  These  are  admitted  at  a  low  rate  of  duty, 
while  leather  manufactures,  are  charged  twenty  per  cent,  on 
the  invoice  value.  What  is  the  reason  of  that  distinction  ? 
Why  is  iron  given  to  the  Canadian  consumer  on  better  terms 
than  boots  and  shoes?  It  cannot  be  that  the  one  is  more 
necessary  than  the  other,  as  iron  is  only  cared  for  and 
handled  by  a  few,  while  leather  protection  for  the  feet,  is 
almost  as  indispensable  as  food  for  the  body,  or  clothes  for 
warmth.  There  must  be  some  other  reason  for  the  favor 
shown  thr  iron  trade,  and  that  reason  it^  is  no  mystery  to 
find.  It  is  desirable  to  have  Canada  developed  by  railroads, 
and  to  further  railroad  undertakings,  no  Provincial  check  .is 


l>- 


V 


TRADS  OF  UNITBD  8TAT1B  AND  OANADA. 


108 


interposed,  but  graats  of  land,  and  every  possible  encourage- 
ment, are  given.  Everj  thing,  of  a  foreign  eharaoter  requyred, 
is  admitted  at  an  import  duty,  all  but  nominal,  and  it  is 
understood  by  legislators  aj&d  by  railroad  directors,  tha^  such 
a  practice  is  of  essential  service  to  the  railroad  cause.  '  It  is 
considered  of  no  account  where  the  imported  articles  origi- 
nally come  from,  and  quite  immaterial  whether  or  not  they 
are  the  domestic  produce  of  the  United  States.  All  are 
agp^ed  .that  the  price  of  bars  and  pluit  are  of  great  import- 
ance to  a  railroad  company,  and  that  the  cost  of  construction, 
and  of  rolling  stock,  are  mixed  up  inseparably  with  half 
yearly  or  annual  dividends,  and  with  the  market  priee  of 
bonds.  For  the  good  of  railroads,  therefore,  every  thing 
of  a  foreign  character,  enteriog  into  their  construction,  is 
admitted  on  the  most  favored  terms.  * 

The  Reciprocity  Treaty  is  a  mere  exposition  of  the  same 
principle.  Canada  is  contiguous  to  the  United  States,  and  at 
some  points  the  United  States  outlets  form  the  best  channels 
for  Canadian  trade,  and  at  other  points  the  Canadian  outiets 
form  the  best  channels  for  the  trade  of  the  United  States. 
To  open  these  outlets,  was  ohe  of  the  stipulations  of  the 
treaty,  that  Americans  might  send  the  produce  of  the  Western 
States,  by  the  St.  Lawrence  route,  to  the  West  India  islands, 
and  to  Europe,  and  that  Canadians  might  ship  Canadian  pro- 
duce by  the  Erie  canal,  and  by  Lake  Champlain  to  the  Hud- 
son river.  There  was  another  advantage,  also  bargained  for. 
If  the  United  States  put  a  duty  on  Canadian  produce,  enter- 
mg  into  consumption  in  the  United  States,  or  if  Canada  put 
a  duty  on  American  produce  entering  into  consumption  within 
its  territory,  then  practically  the  produce  of  the  one  country 
would  be  excluded  from  the  other,  and  in  all  probability  the 
produce  trade  of  both  countries  would  not  have  received  the 
development  which  they  have  done  under  the  present  free 
trade  organization.  On  this  point  no  difference  of  opinion 
can  be  entertained.  Take  the  case  of  this  Chicago  market, 
during  the  winter  and  spring  of  the  present  year,  as  illustrat- 
ing the  point  in  question.  There  was  an  unusually  large 
wheat  accumulation  made  in  store  during  the  winter  months, 


104 


raSOBT  AND  PRACnOB  OF  THE 


and  Ghioago  people,  for  their  own  acooant  could  not  touch  a 
bushel.  Buffalo  and  Oswego,  the  two  large  American  operat- 
ing cities,  on  the  Ghicago  market,  were  financially  embar- 
rassed also,  and  besides,  they  had  no  confidence  in  the  fiiture. 
Left  to  American  eomjietition,  wheat  would  have  almost 
touched  producing  cost,  after  the  close  of  navigation,  and 
been  nominal  at  that,  until  the  spring  opening.  But  the 
Canadians  came  upon  the  ground,  and  in  competing  with  one 
another,  have,  it  appears,  raised  the  price  of  wheat  beyond  its 
value ;  and  the  sequence  to  their  outside  influence  is  a  hi^er 
price  realized  by  the  American  farmer,  and  a  further  present 
reclamation  of  the  prairie.  In  the  same  way  that  it  was 
advantageous  to  impose  no  burdens  on  the  movement  of  cereals 
between  the  two  countries,  it  was  advantageous  also,  to  put 
other  produce  articles  on  the  same  footing.  To  have  imposed 
a  tax  on  American  beef  a^  pork,  entering  into  consumption 
in  Canada,  would  have  been  to  make  these  aiiicles  cost  more 
to  the  consumer,  and  to  have  placed  a  tax  on  Canadian  hogs 
entered  into  consumption  in  the  United  States  would  have 
been  to  limit  the  supply  in  Buffalo,  and  to  have  raised  prices. 
Then  to  have  raised  the  price  of  beef  and  pork  in  Canada 
would  have  been,  on  the  one  hand,  to  discourage  Canadian 
shipping,  and  to  discourage  Canadian  lumbering  on  the  other. 
These  interests,  like  railroads,  were  important,  and  the  good 
to  be  derived  from  the  one  course  of  policy,  and  the  evil 
resulting  from  the' other,  were  too  plain  and  palpable  not  to 
unite  the  sympathies  of  every  class ;  and  the  consumers  of 
beef  and  pork  were  suffered  to  buy  in  the  cheapest  market, 
without  let  or  hindrance  from  the  Province.  This  action  in 
the  matter  of  beef  and  pork  was  not  of  so  commanding 
interest  to  the  United  States,  but  it  was  believed  to  be  advan- 
tageous to  all,  to  have  the  price  of  Canadian  lumber  unin- 
fluenced and  nnincreased  by  the  action  of  the  Federal  govern- 
ment. 

Here  then,  is  the  clear  outline  of  an  important  principle, 
recognized  at  the  moment,  by  the  governments  of  Canada  and 
the  United  States ;  and  for  the  same  reason,  that  what  is 
sauce  for  the  goose,  is  sauce  also  for  the  gander,  every  indi- 


V 


TRAD8  OF  UNmiD  STATBB  AND  CAHADA. 


105 


▼idual  ihtemtit,  within  the  territoxy  of  the  United  States  and 
Ganada,  would  be  stimulated  and  benefited,  if  every  fisoal 
burden,  and  restriotion  of  every  kind,  were  effaced  from  the 
stiUnte  book.  If  railroad  corporations  are  asriited  by  grants 
oi  land,  and  by  having  what  tiiey  want  on  the  easiest  terms, 
and  if  lumbermen  can  produce  their  manufactures  at  a 
cheaper  rate,  and  sell  them  at  a  cheaper  price,  when  they  can 
get  pork  without  paying  tithes  to  the  government,  and .  if 
cheaper  Ohicago  beef  is  a  bonus  to  tiie  shipping  interest,  at 
Quebec  and  Montreal,  Iben  on  what  ground  would  cheap  dry 
goods,  cheap  machinery  and  cheap  everything,  be  a  curse,  and 
not  a  blessing  ? 

The  protectionists,  the  Isaac  Buchanans  of  Canada  andtiio 
United.  States,  have  their  answers  ready.  To  cheapen  things 
generally,  would  be  to  displace  labor,  to  supersede  it,  in  some 
measure  altogether,  and  what  wonld  then  become  of  those 
depending  on  their  wages  ?  There  would  b  enothing  for.  them 
to  do,  tmd  universal  destitution  would  be  brought  about. 
Canada  would  be  injuring  itself  to  benefit  tiie  United  States,' 
and  vice  versa^  a  game  of  cross  purposes  would  be  played, 
and  the'  laborer  and  the  handicraft  made  to  suffer.  But,  does 
not  the  same  reasoning  apply  to  the  case  of  railroads,  and  to 
the  produce  trade  ?  If,  instead  of  Canada  admitting  railroad 
iron  and  locomotive  furniture,  at  a  nominal  duty,  from  the 
United  States,  a  high  rate  of  duty  were  imposed,  then  iron 
would  be  brought  from  Hudson's  Bay,  supposing  that  Eng^ 
lish  iron  were  placed  upon  the  same  footing,  and  glorious 
difficulties  would  intervene  between  the  iron  mining,  and  the 
bringing  of  it  to  market  in  a  manufactured  state.  Quite  a 
fleet  of  vessels  would  find  employment  in  the  trade,  and 
Quebec  shipbuilders  would  get 'fattened  out  beyond  the 
dimensions  of  other  men,  and  wear  aristocratic  airs.  An 
extensive  emigration  agency  would  be  organized  m  England 
and  in  Germany,  and  free  passages  and  free  grants  of  land. 
With  the  plural  curse  of  Eden  and  of  Gain  resting  on  it, 
would  be  given  to  the  new  settlers,  in  the'  mining  district. 
Thus  an  indefinite  amount  of  work  would  be  organized,  and 
why  not  organized  in  that  way,  as  well  as  in  any  other  ?     Why 


106 


THEOBT  AND  PBACTIOB  OF  THB 


not  have  Cornish  minera  come  to  Canada  as  wj^  as  fkotory 
girls,  and  why  not  have  neitr  country  opened  up,  If  U  earn  be 
dotu  f  Mr.  Blk^anan  and  his  followers  are  obTionsly  stand* 
ing  on  steptnng  stones,  and  ^training  at  gnats  instead  of 
camels,  and  making  the  "protection  movement  a  small  pot&to4 
<me. 

Bnt  it  is  aigaed,  that  Canada  admits  foreign  products  for 
consumption  on  better  terms  than  the  United  States  admit 
them,  and  hence  C^da  suffers  injury.  An  obscure  Canadian 
journal  puts  a  case,  and  the  LomdtMk  Mormi^  Heraid,  d 
Toronto,  has  run  the  idea  into  the  ground.  The  United 
States,  it  is  said,  put  a  high  impost  duty  on  locomotive 
engines,  and  Canada  admits  locomotive  engines  free.  To 
place,  therefore,  the  two  countries  on  an  equality,  Canada,  it 
is  said,  should  impose  the  American  rate  of  duty.  By  so 
doing,  it  is  contended,  Canada  would  make  its  own  locomo- 
tives, employ  its  own  operatives,  and  stimulate  immigration. 
That  fallacy  has  just  had  its  quietus ;  and  the  other  ques- 
tions raised  have  only  to  be  noticed.  Supposing  then,  that 
the  Canadian  Parliament  raise  the  tax  on  railroad  ii^n,  and 
on  locomotives  and  their  furniture,  to  the  American  level, 
what  act  of  justice  does  Canada  do  itself,  and  what  good 
result  is  bron^t  about  ?  The  Grand  Trunk  Railroad,  and  the 
other  railroads,  we  shall  suppose,  then  pay  one  thousand  dol- 
lars more  for-.every  engine.  That  extra  cost  is  a  tax  on  rail- 
road companies,  and  a  diminution  of  their  dividends,  if  happily 
they  have  any.  If  they  are  not  so  fortunate,  the  tax  acts  as 
a  depreciation  on  their  stocks  and  bonds  and  mortgages.  It 
is  a  taking  of  so  much  out  of  so  many  people's  pockets,  and 
a  making  of  those  people  so  much  poorer  than  they  were. 
That  is  the  debtor  side  of  the  account.  Now  for  the.  other. 
Tlie  increased  cost  of  the  locomotive  goes  into  the  pockets  of 
so  many  more  people  employed  as  machinists  that  were  not  so 
employed  before.  These  disburse  the  money  which,  if  the 
tax  had  not  been  imposed,  would  have  been  disbursed  by 
others ;  and  so  far  as  Canada  is  concerned,  the  result  is  pre- 
cisely similar.  So  far  as  the  machinists  are  concerned,  they 
have  one  kind  of  employment  in  place  of  another,  and  are 


TRADI  OF  UimiD  BEATB  AND  QiNADA. 


lOT 


I 


poniblj  no  better  than  they  were.  Perhape  tliej  4we 
engaged  in  agrioidtiire  and  did  npt  like  it,  and  wliea  b^ter 
wages,  or  a  ohance  job  at  their  own  empk^ment  turned  op, 
th^  took  hold  and  woriced  along.  If  they  were  oigagpd  in 
agriculture,  then  agrksnltnre  so  for  has  been  abaadwed ;'  and 
if  preriondy  doing  notiiing,  th^  are  now  employed,  and  of 
coarse  the  better  off.  l^at  is  the  credit  side.  (Hie  eoqdoy- 
ment  may  have  been  substitated  for  another  only,  or  those  not 
employed  may  now  be  provided  for,  but  so  far  as  capital  and 
employment  are  concerned,  the  result  is  precisely  similar ; 
and  the  questiooi  arises,  whether  by  the  chao^  the  resources 
w  advantages  of  the  country  are  more  or  less  fully  developei 
than  they  were.  If  Canadian  labor  can  be  emplioyed  in  Uie 
growth  of  wheat,  with  an  advantage  of  a  half  or  quarter, 
and  can  only  be  employed  in-manufhctures  under  tiie  shade  of 
protecting  duties,  then  the  first  interest  and  not  the  last, 
should  have  the  anxious  care  of  the  Ganadian  legislature. 

It  is  to  be  observed  further,  that 'perfect  equality  would 
not  be  established  between  the  United  States  and  Canada,  by 
the  raising  of  the  Canadian  tariff  to  tiie  level  of  the  tariff  o£ 
the  United  States.  Canada  would  be  no  better  able  than  it 
is  at  present  to  establish  manufi&ctnres,  and  the  United  States 
would  be  no  less  able  to  keep  their  manufactures  going,  were 
the  patronage  of  Canada  withdrawn.  Besides,  the  msti^er  of 
locomotives  on  the  American  tariff  is  an  anomtdy  and  a  farce, 
so  far  as  Canada  is  concerned ;  and  if  the  United  States 
enact  a  supererogatory  and  stupid  law>  there  is  no  good  reas(m 
in  Canada  following  suit,  particularly  when  Canada  would 
only  harm  itself.  Strange  though  it  may  sound  to  some, 
there  is  a  positive  privilege  in  Canada  employing  American 
workdbiops,  and  American  vessels  to  bring  tea  firom  China,  as 
the  United  States,  by  .virtue  of  their  produce  and  manufao- 
tnres,  can  buy  foreign  products  on  better  terms ;  but  even 
were  Canada  and  the  United  States  at  one  on  that,  still  Cana-. 
dian  capital  could  be  more  profitably  employed  at  home. 
Canada  has  innumerable  advantages,  of  the  highest  order, 
and  common  sense  suggests  that  these  should  be  first  devel- 
oped.   Let  the  oonmiunication  between  the  upper  lakes  and 


w\ 


108 


TBIOBT  AMD  PtAOnOl  OF  CHI 


the  ocean  be  made  what  it  should  be,  and  let  Montreal  hare 
a  highway  into  the  Hudson  river.  Let  the  forest  be  cleared, 
and  the  axe  attd  saw  and  planing  mill  dress  the  pA>dact  for 
every  qiarket  in  the  world.  Let  Wheat  be  scattered  broad* 
oast  between  the  chpp{)led  and  blackened  stamps,  and  the  poor 
and  nnemplojred  of  Europe  be  indooed  to  reap  the  harvest. 
Let  the  hc^  and  cattle  of  Iowa,  Illinois  and  C^o  be  shij^ped 
to  Montreal,  and  the  business  of  packing  beef  and  pork  be 
shifted  to  its  proper  centre,  and  the  product  be  put  upon  the 
market  six  weeks  earlier  than  at  the  present  time.  Finally, 
let  the  St.  Lawrence  be  the  great  highway  of  emigration  fixmi 
Inrope  to  the  West,  and  Canadian  difficulties  will  soon  van- 
ish into  air.  These  are  objects  worthy  of  Canadian  enter- 
prise,  and  of  the  monied  capital  of  the  world,  and  for  these, 
Canadian  Parliaments  and  Canadian  people  should  legislate 
and  strive,  and  the  protection  party  and  their  dreams  should 
be  left  behind  unnoticed. 

The  following  is  the  United  States  official  statement  Of  the 
specie  movement  between  the  United  States  and  Canada  since 
1850,  and  is  valuable,  as  showing  the  'small  account  of  the 
precious  metals  in  the  trade  of  the  two  countries :  > 


BMDIMO  JUKB  SO. 

TOTAL  KXFOBTB. 

TOTAJ.  IMPORTS. 

BXOBSB  OV  IMPOSTS. 

1850 

«   426,369 

$    426,369 

1851 

$237,801 

1,868,727 

1,140,926 

1852 



1853 

617,066 

984,619 

467,219 

1854 

442,477 

76,000 

1855 

32 

32 

1856 

1857 

260 

266 

The  practical  trade  relations  of  the  United  States  and 
Canada  are  of  the  most  friendly  kind,  the  paper  money  of 
Canada  circulating  fireely  in  the  United  States,  andmce  versa. 
The  bank  detectors,  in  fact,  embrace  the  banking  institutions 
of  both  countries,  and  the  amount  of  discount  to  which  the 
notes  of  each  are  subject,  together  with  the  counterfeits,  are 
stated  in  the  same  open  and  impartial  way.  Then  the 
merchants  of  both  countries  have  the  same  commercial  pro- 
tective associations,  and  the  circumstances  of  any  business 


\ 


TRAOB  OF  VmTMD  SIATBB  AMD  OANADA. 


109 


firm  oan  be  ascertained  throoghoat  the  length  and  bread^  of 
the  whole  oontiDent.  Snch  being  the  oaae,  Canadian  mer- 
chants go  to  the  New  York  and  Boston  markets,  and  to  the 
Eastern  manoiiEUJtiiring  distriots,  as  nnreservedfy  and  aspnndi 
at  home  as  if  these  were  in  British  territory ;  and  the  Bof- 
fido  and  Bochester  produce  dealer  Tisits  Toronto,  Hamilton, 
London  and  Chatham,  in  the  same  friendly  way^  buying  up 
wheat,  hogs  and  butter,  or  oflbring  cheese,  broom  com, 
wash-boards  or  Yankee  notions. 

Imported  and  manu&ctured  articles  are  sold,  generally, 
(m  from  four  to  nine  months'  time,  and  produce,  invariaUy 
for  cash.  Great  latitude  is,  therefore,  given  to  the  Canadian 
buyer,  and  so  long  as  sales  are  made  on  the  same  liberal 
terms,  the  Canadian  home  producer  has  a  hopeless  struggle. 
A  Canadian  merchant  in  good  standing  gives  his  note  only 
against  his  purchases,  and  these  mature  usually  in  New  York. 
Then  these  notes  are  met  by  Canadian  bankers  in  drafts  on 
England,  or  by  New  York  acceptances  against  the  consign- 
ments of  Canadian  shippers ;  and  thus  the  trade  is  balanced 
without  specie  movements  being  made.  The  usual  form  in 
which  Canadian  purchases  take  place  in  Western  markets, 
is  by  New  York  credits  against  drafts  at  thirty  or  sixty  or 
ninety  days,  and  such  drafts  are  always  in  demand  by  West- 
ern bankers,  to  make  the  payments  of  local  tittders  E'st. 

Under  the  warehousing  laws  of  the  two  countries,  mer- 
chandize of  any  kind  can  be  moved  from  the  one  country  to 
the  other,  in  traitsitUf  to  parts  abroad,  without  further  trouble 
than  is  observed  in  Europe.  The  Canadian  merchant  can, 
therefore,  import  into  New  York,  or  ship  Canadian  manufac- 
tures across  the  territory  of  the  United  States  without  duties 
being  paid,  and  the  American  merchant  can  make  the  same 
use  of  Canadian  territory  and  transportation,  when  he  feels 
disposed. 


no 


TBADI  OF  URITKD  &tA' 


AHD  OAHIDA. 


Ml 


1887. 


ToTix  BxpoBM  imoK  Cavaiu 

To  all  floaotriM MjMjtOi 

3,901,609 


LMviOff       £3/)60,9M, 

UporM  alMwten  tku  tha  Unilad  Itetn. 


Total  Ezmmhn  vboii  Oawaba 
To  United  BWM £»JKIJU» 


TocAb  Ihtosm  or  Cavada 

XVomaUoouBtriM.....  X9,857,649 

6,066,168 


hemriag       £4,801,487, 

biporti  oMmt  than  ftom  A*  miltod  BtalM. 


Total  Imomm  or  CkxABA 
From  UoiMd  SutM...  £6,0&«,lt8 


In  round  numbers  the  United  States  take  more  than  half 
of  the  exported  commodities  of  Oanada ;  and  supply  more 
than  half  of  the  commodities  that  Canada  consnmes.  Were 
Canada  to  out  the  United  States  connection^  it  would,  there- 
fbre,  be  cutting  its  own,  throat,  and  without  inflicting  irre- 
parable injury  on  the  tJnited  States.  Canada  stands  in 
pretty  much  the  same  relation  to  the  United  States  as  tiie 
United  States  do  to  England;  th^  more  cammereially 
dependent  and  weaker  vessel. 

The  position  of  tho  trade  of  the  United  States,  as  de- 
pendent on  that  of  Canada,  is  brought  out  by  the  following 
figures: 


1867 

Total  U.  8.  Exposts 

To  all  countries $362,960,682 

16,574,895 


Leaving       $346,385,787, 

■zported  elsewhere  than  Canada. 


Total  U.  S.  Exfobtb 
To  Canada $16,574,895 


Total  U.  S.  Ihpobts 
From  all  countries...  $360,890,141 
18,291,834 


Leaving       $342,608,307, 

Importa  other  than  from  Canada. 


Total  U.  S. Iuforts 
From  Cana^fi $18,291,834 


United  States. 
Imports  from  Canada. .  $18,291,834 
Exports  to  Canada 16,574,895 

Leaving       $1,716,939, 
,     Mffnanoe  in  fivor  of  Canada. 
(U.  8.  Trearaiy  Betnms,  Jnne  80th,  1867.) 


Cakada. 

Imports  from  U.  S £5,056,162 

Exports  to  U.  S 3,301,609 


Leaving       £1,754,453, 
DUference  in  favor  of  U.  8. 
(Canada  Trade  and  Navigation  Betuma, 
DeoenAer  Slat,  1867.) 


V 


lU 


THB   BBOIPBOOITY    TBSATT. 


AtraM^cxMBdingtlMrighfaorflriiiiig,  aad  rsgnUtlnf  tto 
Mt?ig»tfcm  bctiwa  but  BriUaaie  Mtjntj't  poMSiitoni  to  Worth  AoMrfoA  Mi 
Ito  Uaitad  StiMa,  coadwUd  In  tht  d^  of  WMkiagtoa  oa  th*  Mh  cUj  «C 
Jane,  Aimo  Domial  lefti,  between  the  United  8t«tM  of  Ammkk  ead  htr 
Miyeity  the  Qneen  of  the  Unhed  Kingdom  ot  Greet  JMtato  and  Irebuid. 

The  g«T«niinent  of  the  United  Steiee,  beiag  eqanUy  deiinNW  with.htr 
Mi^eity  the  Qneen  of  Gwt  Briteto,  to  vnM.  ftather  mlinndeiitMidiiig  betwwi 
thfilr  reepeotiTe  citlaene  aaki  Ml;({eott  in  tegwd  to  the  extent  of  the  rii^tiof  llah* 
ii^  OB  dMcoMti  of  British  Iforth  Amerioe,  jecarad  to  each  bj  Aitide  ▲  of  • 
eo«T«ktion  between  the  United  Statee  uid  Qitat  Britain,  signed  nt  London  on 
the  SOth  day  of  October,  1818,  and  being  also  desiroos  to  regnlato  the  oom- 
meroe  and  navigation  between  their  respective  territories  and  people,  and  nore 
^qMclallj  between  her  Ifi^eetjr's  possessions  in  North  America  and  the  United 
BMites,  in  sndi  manner  as  to  render  the  same  redpreoally  beneAcial  and  satis* 
factory,  have  respectively  named  plenipotentiariea  to  eonibr  and  agree  tbom- 
•pQ»--«hat  is  to  say,  the  President  of  the  United  States  of  America,  William 
L.  liiurey,  Secretaiy  of  Slate  of  the  United  Stales,  and  her  llbyesty  the  Qneen 
•f  Great  Britain  and  Ireland,  Jamea,  Barl  of  BIgin  and  Kineasdine,  Loid 
Bmoe  and  Blgin,  a  Peer  of  the  United  ^ngdem,  Kni(^t  of  the  Most  AaeiflU 
and  Most  Noble  Order  of  the  Thistle,  and  Governor  General  in  and  over  all 
her  Britannic  Mi^esty's  pnMnces  on  the  continent  of  Nwth  America,  and  to 
and  over  the  Island  of  Prince  Edward,  who,  after  having  commnnicated  to  aaoh 
other  thefar  respective  Aill  powers,  found  in  good  and  dae  fonn,  have  agreed 
•pon  the  following  articles  : 

Akt.  1.  It  is  agreed  by  the  high  contracting  parties,  diat  in  addition  to  die 
liberty  secured  to  die  United  States'  fishermen  hy  the  above  mentioned  Cott' 
vention  of  1818,  of  taking,  caring  and  drying  fish  on  oertahi  coasts  of  the 
British  North  American  Colonies  therein  defined,  the  inhabitants  of  the  United 
States  shall  have,  in  common  with  the  sabjeets  of  her  Britannie  Mifles^,  the 
liberty  to  take  fish  of  every  kind  except  sheU  fish,  on  the  sea  ooastslad  shone, 
and  in  the  bays,  harbors  and  creeks  of  Canada,  New  Bmnswiok,  Neva  Sootia, 
Prince  Edward  Island,  and  of  •  the  several  islands  therennto  a^jaoent, 
without  being  restricted  to  any  distance  from  the  shore,  with  permission  to 
land  upon  the  coasts  and  shores  of  those  colonies  and  tho  islands  tliereof,  and 
upon  the  Magdalen  Islands,  for  the  purpose  of  drying  their  nets  and  oaring 
their  fish. 

That  in  so  doing  they  do  not  interfere  with  the  rights  of  private  propetty,  or 
with  British  fishem>en,  in  the  peaceable  use  of  any  part  of  the  coast  in  their 
occupancy  for  the  same  purpose.  It  is  understood  that  the,  above  mentioBed 
liberty  applies  solely  to  sea  fishery,  and  that  salmon  and  shad  fisheries,  and  all 
fisheries  in  rivers  and  mouths  ef  rivers,  are  hereby  reserved  exdnsively  for 
British  fishermen.  And  it  is  ftarther  agreed,  that  in  order  to  prevent  or  settle 
any  disputes  as  to  the  places  which  the  reservation  of  exclusive  right  to  BriUsh 
fishermen,  contained  in  this  article,  and  that  of  fishermen  of  the  Ynited  Stales, 
contained  in  the  next  sncceeding  article  apply  to  each  of  the  high  contracting 


I   i 


III  I 


112 


TBI  BWIPBOOIIT  TBIATT. 


partiM,  on  the  application  of  elthw  to  tlM  other,  •hall  within  six  montha  thar*> 
■Aer  appobt  a  oommiMioner. 

The  Mid  oommiMiooen,  before  proceeding  to  any  boiinou,  ihall  maka.  and 
nbeeribe  a  lolemn  declaration  that  they  will  impartially  and  careftilly  daeide, 
to  the  beet  of  their  Jndgment  and  according  to  Jnstice  and  eqaity,  without  Ihar, 
thror,  or  alTection  to  theiir  own  oonntry,  upon  all  inch  phMXi  ai  are  intended 
to  be  ruerred  and  exdadiod  horn  the  common  liberty  of  flehermen  ander  thia 
and  the  next  raooeeding  article,  and  tadi  declaration  shall  be  entered  on  tha 
record  of  their  proceedings. 

The  commissiopers  shall  name  some  third  person  to  act  as  arbitrator  or  nm* 
pire  in  any  canse  or  causes  on  which  they  may  themsalres  differ  in  opinion. 
If  they  should  not  baable  to  agree  upon  the  name  of  such'  person,  they  shall 
each  name  a  person,  and  it  shall  be  determined  by  lot  which  of  the  two  persons 
so  named  shall  be  arbitrator  or  umpire  in  cases  of  difference  or  disagreement 
between  the  oommlssionen. 

The  person  to  be  chosen  to  be  arbitrator  or  umpire,  shall,  before  proceeding 
to  act  as  such  in  any  case,  make  and  subscribe  a  solemn  declaration,  in  a  form 
similar  to  that  whidi  shall  already  have  been  made  and  subscribed  by  the  com> 
missioners,  which  shall  be  entered  on  the  record  of  their  proceedings. 

In  the  event  of  the  death,  absence,  or  incapacity  of  either  the  commissiooeis 
or  the  arbitrators,  or  umphre,  or  of  their  or  his  omitting,  declining  or  <Seasing 
to  act  as  such  commissioner,  arbitrator  or  umpire,  another  and  diffiBrent  person 
shall  be  appointed  or  named,  as  aforesaid,  to  act  as  such  commissioneiv  arbitra- 
tor, or  umpire,  in  the  place  and  stead  of  the  person  so  originally  appointed 
or  named  as  aforesaid,  and  shall  make  and  subscribe  such  declaration  as  afora* 
■aid. 

Such  commissioners  shall  proceed  to  examine  the  coasts  of  the  North 
American  Provinces  and  of  the  United  States  embraced  within  the  provisions 
of  the  first  and  second  articles  of  this  treaty,  and  shall  designate  die  places 
reserved  by  the  said  articles  from  the  common  right  of  fishing  themia  The 
decision  of  the  commissioners,  and  of  the  arbitrator  or  umpire,  shall  be  given 
in  writing  in  each  case,  and  sliall  be  signed  by  them  respectively.  The  high 
contracting  parties  hereby  solemnly  engage  to  consider  the  decision  of  the 
commissioners  conjointly,  or  of  the  arbitrator  or  umpire,  as  the  case  may  be, 
as  absolutely  final  and  conclusive  in  each  case  decided  npon  by  them  or  him 
respectively. 

Abt.  2.  It  is  agreed  by  the  high  contracting  parties  that  British  subjects 
•hall  Iiave,  in  common  with  the  citizens  of  the  United  States,  the  liberty  to 
take  fish  of  every  kind  except  shell  fish,  on  the  eastern  sea-coasts  and  shores 
of  the  United  States  north  of  the  thirty-sixth  parallel  of  north  latitude,  and  on 
the  shores  of  the  several  islands  thereunto  adjacent,  and  in  the  bays,  harbors 
and  creeks  of  the  said  sea,  the  coasts  and  shores  of  the  United  States  and  of 
the  said  islands,, without  being  restricted  to  any  distance  from  the  shores,  with 
permission  to  land  upon  the  said  coast  of  the  United  States  and  of  the  islands 
aforesaid,  for  the  purpose  of  drying  their  nets  and  curing  their  fish,  providing 
that  in  so  doing  they  do  not  interfere  with  the  rights  of  private  property,  or 
with  the  fishermen  of  the  United  States  in  the  peaceable  use  of  any  part  of  the 
said  coasts,  in  their  occupancy  for  the  same  purpose. 

It  is  understood  thai  the  above  mentioned  liberty  applies  solely  to  the  sea 


THB  BlOTPROaTT  tPBATT. 


118 


IblMry,  ud  that  Mlmos  and  shad  tUbmrim,  Md  all  iriwrii  ia  rivwn  ud 
mouths  of  rlTen.  aro  heraby  nu>ci'V'*de](cl«tir«tjf  ftr  fiahanNO  of  tha  UniMd 

Abt.  a.  It  U  afned  that  the  articles  enumerated  ia  tlie  schadala,  haituato 
annexed,  being  the  growth  aad  prodaco  of  the  aforeaaid  BriMidi  ooioaioi  or  of 
the  United  Statea,  ihall  be  admitted  into  each  couuny  reapectiveljr^  flw  of 
datj. 

BORBOOta. 

Grain,  flonr  and  breadstuffa  of  all  kinds,  animala  of  all  kinds ;  fresh,  smoked 
and  salted  meats,  cotton,  wool,  seeds,  and  regotables ;  undried  fruits,  dried 
fhiiu ;  fish  of  all  kinds ;  products  of  flsh  an3  all  other  creatures  living  in  tho 
water, •poultry,  cggs„|iides,  ftars,  skins  or  tails  undressed;  stone  or  marble  ia 
its  crude  or  un wrought  state ;  slate,  butter,  cheese,  tallow,  lard,  horns,  manalw ; 
ores  of  metals  of  all  kinds ;  coal,  pitch,  tar,  turpentine,  ashes ;  timber  and 
lumber  of  all  kinds,  round,  hewed  and  sawed,  unmanufactared,  in  whole  or  in 
part ;  firewood ;  plants,  shrubs  and  trees ;  pelts,  wool ;  flsh  oil ;  rioe,  broom< 
com  and  bark ;  gypsum,  ground  and  ungronnd ;  hewn  or  wrought  or  nnwronght 
burr  or  grindstones ;  dyestuffs ;  flax,  hemp  and  tow,  nnmabnfkctared ;  naman- 
ttfactured  tobacco. 

Art.  4.  It  is  agreed  that  the  citizen's  and  intiabitants  Of  the  United  States 
shall  have  the  right  to  navigate  the  river  St.  Lawrence  and  the  canals  in  Cana* 
da,  used  as  the  means  of  communicating  between  the  great  lakes  and  the 
Atlantic  ocean,  with  thoir  vessels,  boats,  and  crafts,  as  fully  as  the  subjeeta  of 
her  Britannic  Majesty,  subject  only  to  the  same  tolls  and  other  assessments  as 
now  or  may  hereafter  be  exacted  of  her  Majesty's  said  subjects,  it  being  under- 
stood, however,  that  the  British  Government  retains  the  right  of  suspending 
this  privilege  on  giving  due  notice  thereof  to  the  government  of  the  United 
States. 

It  is  further  agreed,  that  if  at  any  time  the  British  government  should  exer- 
cise the  said  reserved  right,  the  government  of  the  United  States  shall  have  the , 
right  of  suspending,  if  it  thinks  fit,  the  operation  of  Article  3  of  the  present 
treaty,  in  so  far  as  the  province  of  Cana  la  is  affected  thereby,  for  so  long  aa 
the  suspension  of  the  free  navigation  of  the  St.  Lawrence  or  the  canals  may 
continue. 

It  is  further  agreed,  that  British  subjects  shall  have  the  right  freely  to  naTi- 
gato  Lake  Michigan  with  their  vessels,  boats  and  crafts  so  long  aa  the  privilege 
of  navigating  the  river  St.  Lawrence,  secured  to  Americans  by  the  above  clause 
of  the  present  article,  shall  continue ;  and  the  government  of  the  United  Statea 
further  engages  to  urge  upon  the  State  governments  to  secure  to  the  anbjeeta  of 
her  Britannic  Majesty  the  use  of  the  several  canals  on  terms  of  equity  with  the 
inhabitants  of  the  United  States. 

And  it  is  further  agreed  that  no  export  duty,  or  other  duty,  shall  be  levied 
on  lumber  or  timber  of  any  kind  cut  on  that  portion  of  the  American  territory 
in  the  Sute  of  Maine,  watered  by  the  river  St.  John  and  its  tributaries,  and 
floated  down  that  river  to  sea,  when  the  same  u  shipped  to  the  United  Statea 
from  the  province  of  New  Brunswick. 

Art.  5.  The  present  treaty  shall  take  effect  as  soon  as  the  laws  required 
to  carry  it  into  operation  shall  have  been  passed  by  the  Imperial  Parliament  of 

8 


114 


RECENT  CANADIAN  PETITION. 


iiil 


Great  Britain  and  hj  the  Provincial  Parliaments  of  those  of  the  British  North 
American  colonies  which  are  affected  by  this  treaty  on  the  one  hand,  and  by 
the  Congress  of  the  United  States  on  the  other ;  such  assent  having  been  given, 
the  treaty  shall  remain  in  force  for  ten  years  from  the  date  at  which  it  may 
come  into  operation ;  and  farther,  until  the  operation  of  twelve  months  after 
either  of  the  high  contracting  parties  shall  give  notice  to  the  other  of  its  wish 
to  terminate  the  same,  each  of  the  high  contracting  parties  being  at  liberty  to 
give  snch  notice  to  the  other,  at  the  end  of  the  said  term  of  ten  years  or  at  any 
time  afterwards. 

It  is  clearly  understood,  however,  that  this  stipulation  is  not  intended  to 
affect  the  reservation  made  by  Article  4,  of  the  present  trieaty,  with  regard  to 
the  right  of  temporarily  suspending  the  operation  of  Article  3  and  4  thereof. 

Abt.  6.  And  it  is  hereby  farther  agreed,  .that  the  provisions  and  stipula- 
tions of  the  foregoing  articles  shall  extend  to  the  Island  of  Newfoundland,  so 
far  as  they  are  applicable  to  that  colony.  But  if  the  Imperial  Parliament,  the 
Provincial  Parliament  of  Newfoundland,  or  the  Congress  of  the  United  States 
shall  not  embrace  in  their  laws,  enacted  for  carrying  this  treaty  into  effect,  the 
colony  of  Newfoundland,  then  this  article  Shall  be  of  no  effect ;  but  the  omis- 
sion to  make  provision  by  law  to  give  it  effect,  by  cither  of  the  legislative 
boi^ius  aforesaid,  shall  not  in  any  way  impair  the  remaining  articles  of  this 
treaty.  ,  , ) 

Art.  7.  The  present  treaty  shall  be  duly  ratified,  and  the  mutual  exchange 
of  ratifications  shall  take  place  in  Washington,  within  six  months  from  the 
date  hereof,  or  earlier  if  possible. 

In  faith  whereof,  we,  the  respective  plenipotentiaries,  have  signed  this  treaty, 
and  have  hereunto  affixed  our  seals. 

Donu  in  triplicate,  at  Washington,  the  fifth  day  of  June,  Anno  Domini,  ono 
thousand  eight  hundred  and  fifty-four. 

W.  L.  Mabct,  [i.  fl.l 

Elgin  and  Eincabdine,  [l.  a.] 


RECENT   CANADIAN    PETITION    FOR  ENCOURAGEMENT   TO 

HOME   INDUSTRY. 


To  the  Honorable  the  Legislative  AssemUy  of  the  Province  of  Canada  in  Parliament 
cuaembled: 

The  memorial  of  the  undersigned  merchants,  manufacturers  and  others, 
from  the  various  sections  of  the  said  Province,  assembled  in  Public  meeting  at 
Toronto, 

RespectfuUy  showeth, — That  your  memorialists  desire  to  call  the  attention  of 
your  honorable  House  to  the  depression  which  all  branches  of  manufactures  and 
commerce  now  suffer  in  the  Province,  and  to  the  necessity  that  exists  for 
a  consideration  of  the  causes  to  which  this  depression  is  wholly  or  in  part 
attributable. 


i  ; 
11 


BECENT  CANADIAN  PETITION. 


115 


part 


That,  in  the  opinion  cf  your  memorialists,  the  difficulties  now  experienced 
by  all  classes  of  the  community  are  in  a  large  degree  the  consequence  of  the 
anfur  competition  to  which  the  present  tariff  of  the  Province  exposes  its 
various  branches  of  industry,  and  that,  with  a  view  to  the  promotion  of  general 
prosperity,  a  readjustment  of  the  scale  of  duties  laid  upon  bnports  has  become 
an  actual  necessity. 

That  the  existing  tariff  is  based  upon  erroneous  principles,  inasmuch  as  it 
admits,  at  low  rates  of  duty,  the  manufactures  of  other  countries,  which  are 
thus  brought  into  jcollision  with  a  class  of  labor  now  in  Canada  not  fitted  for 
agricultural  pursuits,  and  charges  high  rates  on  articles  that  cannot  be  produced 
within  our  boundaries. 

Th&t  apart  from  the  prevailing  depression,  the  present  Frovincial  tariff  oper- 
ates  disadvantageonsly  by  preventing  the  influx  of  capital,  which,  under  due 
encouragement,  would  be  introduced  and  applied  to  the  development  of  our 
natural  resources,  and  moreover,  so  limits  the  scope  of  industry  as  to  offer 
impediments  in  the  way  of  skill,  and  laigoly  lessen  the  attractiveness  of  Canada 
as  a  field  for  emigration. 

That  a  readjustment  of  the  tariff,  if  governed  by  principles  in  themselves 
just,  will  materially  benefit  every  class  of  the  community,  without  in  any  man- 
ner crippling  the  customs'  revenue. 

That,  in  the  judgment  of  your  memorialists,  such  a  readjustment  should 
recognize  as  distinctive  principles  the  admission,  duty  free,  or  at  low  rates  of 
duty,  of  raw  materials  for  manufacture,  not  produced  in  the  Province;  the 
admission,  free  of  duty,  or  at  low  rates,  of  articles  entering  largely  into  general 
consumption,  and  not  competing  with  thb  natural  products  of  Canada,  and 
the  levying  of  higher  duties  upon  articles  entering  into  competition  with 
articles  manufactured,  or  which,  with  due  encouragement,  may  be  manufactured 
by  our  people. 

That  your  memorialists,  representing  diversified  industrial  and  mercantile 
interests,  and  having  ample  opportunities  of  ascertaining  the  wants  and  convic- 
tions of  the  classes  with  whom  they  cooperate,  urge  upon  your  honorable 
House  the  expediency,  in  the  change  of  the  tariff  sought,  of  proceeding  upon 
the  following  positions  as  guiding  points  in  the  work  of  tariff  reform : 

1.  That  ^all  materials  upon  which  there  is  but  a  small  amount  of  labor 
expended  prior  to  their  importation,  and  leaving  the  larger  proportion  of  labor 
to  be  performed  in  Canada,  should  be  admitted  free,  or  at  a  dut^.  .iOt  to  exceed 
two  and  a  half  per  cent. 

2.  That  all  articles  entering  large'.,'  into  consumption  in  this  country,  and 
which  Canada  cannot  produce,  such  as  tea,  coffee,  raw  sugar,  molasses,  &c., 
should  not  be  charged  with  a  liigh  rate  of  duty  The  duty  thereon  should  be 
at  once  reduced  to  the  lowest  possible  rate  consistent  with  the  requirements  of 
the  revenue,  but  to  be  admitted  free,  if  possiJile. 

3.  Merchandise  in  the  dry  goods,  hardware  and  crockery  trades,  being  arti- 
cles of  luxury  or  for  use  and  not  likely  for  some  time  to  be  manufactured  in 
this  country,  and  which  are  used  to  form  parts  of  the  goods  manufactured 
here,  should  be  chargeable  with  a  medium  rate  of  about  fifteen  per  cent,  duty, 
say  not  less  than  fifteen  nor  over  twenty  per  cent.,  consistent  with  the  require- 
ments of  the  revenue  and  at  a  rate  of  about  ten  per  cent,  below  the  manu- 
factures coming  directly  into  competition  with  our  productions. 


lift 


BECENT  CANADIAN  PEIITION. 


4.  All  manafactoTOS  in  vrood,  iron,  tin,  bnui  and  copper,  leather  and  india- 
rubber,  not  inclnded  in  class  3,  as  specified  in  the  qmended  proposed  dchedole 
of  duties,  at  a  rate  of  25  per  cent. 

That  your  memorialists  beliere  that  the  immediate  effect  of  a  revision  of  the 
tariff,  according  to  the  scale  now  suggested,  will  be  to  mitigate  the  despond- 
ency perceptible  in  every  qoarteir,  to  create  a  feeling  of  confidence  in  the  minds 
of  resident  capitalists,  to  «ttract  the  attention  of  foreigners  to  our  magnificent 
manufacturing  resources,  to  stimulate  the  enterprise  of  our  mechanics  and 
artizans,  and  to  impart  fresh  vigor  to  our  agricultural  population. 

That  your  memorialists,  in  conclusion,  respectfully  pray  that  your  honorable  ■ 
House  will  be  pleased  to  give  prompt  consideration  to  the  whole  subject,  and 
adopt  without  delay  suck  changes  as  may  b4  found  essential  to  the  promotion 
of  the  great  interests  that  are  involved,  andt.3  to  your  wisdom  shall  seem  meet. 

And  your  memorialists  will  ever  pray,  &c. 


»'•  I 


I       !:i 


CHAPTER    V. 


THE  NOBTH-WEST,  AND  ITS  OUTLETS  TO  THE  OCEAN. 

It  is  not  necessary,  after  what  has  been  stated  in  the  pre- 
ceding pages,  that  we  should  proceed  further  to  inquire, 
whether  it  were  better  for  the  North-West  to  encourage  man- 
ufactures, to  promote  the  opening  up  of  new  districts,  the  im- 
provement of  existing,  trading  highways,  or  the'occupation  of 
the  soil.  These  questions  are  set  at  rest,  and  it  remains  only, 
to  draw  attention  to  resources,  and  to  indicate  the  way  in 
which,  perhaps,  they  can  be  best  developed. 

If  we  take  a  map  of  North  America,  and  follow  the  course 
of  the  Mississippi,  some  thirteen  hundred  miles,  from  the 
Gulf  of  Mexico,  we  find  the  broad  outline  of  a  navigable 
river,  winding  round  the  extreme  southern  point  of  the  State 
of  Illinois,  and  forming  the  line  of  separation  between  Ken- 
tucky and  that  State.  If  we  trace  that  river  to  its  source, 
we  find  it  skirting  Indiana  and  Ohio,  and  separating  these 
States  from  Kentucky  and  Virginia,  and  ultimately  mingling 
its  waters  with  Lake  Erie.  Along  its  course  we  find  the 
names  of  cities,  familiar  as  household  words,  throughout  the 
length  and  breadth  of  the  United  States,  whose  products  are 
to  be  met  with,  in  every  market  of  the  world.  These  cities 
may  send  their  products  to  the  Mississippi,  or  into  the  Atlan- 
tic, by  the  chain  of  lakes,  or  they  may  choose  a  market  East, 
over  one  or  other  of  the  numerous  railroads.  The  agricul- 
turist, inhabiting  that  other  thirteen  hundred  miles  of  navi- 
gable canal,  and  river  country,  has  the  same  choice  of  mar- 
kets* presented  to  him,  and  as  a  consequence  receives  the 
highest  price  for  every  article  of  food  that  he  brings  to 
market.  These  advantages  have  long  since  told  upon  the 
district,  and  the  agricultural  development  of  some  portions  of 
Ohio,  is  not  behind  the  most  advanced  in  Europe,  and  its 


m 


m 


I  ! 


118 


THE  N0BTH-WE8T,  AND  ITS 


farmers'  cows  yield  almost  twice  the  milk  and  butter  that 
farmers*  cows  do  in  the  British  Provinces.  Every  year  adds 
to  the  population,  to  the  extension  of  agriculture,  and  to  the 
accumulation  of  useful  products. 

If  we  return  to  the  Mississippi,  we  find  Cairo,  at  the  junction 
of  the  Ohio  river,  communicating  with  Chicago,  by  the  branch 
of  the  Illinois  Central  Railroad,  and  competing  in  the  drain 
of  produce,  with  the  northern  section  of  Illinois.  In  that  it* 
is  successful,  over  ,a  large  tract  of  the  most  fertile  portion  of 
the  State,  and  as  the  trade  of  the  lower  Mississippi  with  the 
North,  becomes  developed,  Cairo  promises  to  become,  what 
geographically  it  is  in  fact,  the  business  centre  of  the  Missis- 
sippi Valley. 

Further  up  the  river,  we  reach  St.  Louis,  a  well  established 
city,  with  a  name  inferior  to  none  iu  the  United  States,  and 
a  class  of  business  men,  i^qady  and  able  to  further  any  enter- 
prise. St.  Louis  has  wisely  guarded  against  the  indiscretions 
of  many  western  cities,  and  instead  of  her  people  devoting 
themselves  and  their  means,  to  mere  speculative  operations  in 
real  estate  and  other  things,  they  have  settled  down  to  legiti- 
mate manufacturing  and  trading  operations.  Almost  every 
branch  of  industry  is  largely  represented  in  St.  Louis,  and 
solid  progress  is  being  made  in  the  accumulation  of  substan- 
tial wealth.  If  a  less  proportion  of  the  people  had  devoted 
themselves  to  manufacturing,  and  more  had  settled  down  to 
agriculture,  the  increase  of  wealth,  would  have  been  greater 
than  it  is ;  but  in  a  free  country  it  is  for  every  man  to  deter- 
mine for  himself,  the  way  in  which  he  shall  make  his  living ; 
and  it  is  creditable  to  all  concerned  that  the  capital  of  the 
city,  if  not  wholly  agricultural,  is  at  least  something  better 
and  more  productive  than  endless  streets  of  unoccupied 
palaces  of  brick  or  stone  or  marble.  On  such  a  basis,  St. 
Louis  has  not  been  raised,  and  as  a  consequence,  has  suffered 
less  from  the  revulsion  than  other  cities. 

Above  St.  Louis,  the  Missouri  forms  a  junction  with  the 
Mississippi,  after  three  thousand  miles  meandering  from  its 
sources,  beyond  the  Rocky  Mountains,  and  opens  to  uninter- 
rupted navigation,  two  thousand  five  hundred  miles  of  fertile 


i 


OUTLBrrS  TO  THB  OCEAN. 


119 


country.  Tributaries  of  the  Missouri  are  also  navigable  for 
untold  miles,  and  into  these  distant  regions  the  tide  of  immi- 
gration has  poured  steadily  for  several  years,  and  receipts 
&om  the  Missouri,  figure  prominently  in  the  Statistics,  of  the 
St.  Louis  Board  of  Trade.  Still  the  country  is  unsettled,  and 
beyond  the  "  Bluffs,"  the  elk  and  buffalo,  and  the  mountain 
she6p,  graze  on  the  primeval  grassy  plains,  unmolested  by  the 
approach  of  man.  Nothing  breaks  the  vast  solitude  of  the 
boundless  prairie,  and  its  thin  sod  has  but  to  be  turned  over 
and  the  seed  scattered  on  its  surface  in  the  rudest  way,  and  a> 
bounteous  harvest  will  be  reaped.  Where  is  labor  so  fully 
recompensed,  as  in  the  cultivation  of  the  Western  prairie, 
and  in  what  way  can  a  nation  so  cheaply  earn  a  command 
over  every  other  product  ? 

Above  the  junction  of  the  Missouri,  the  Illinois  river  pays 
tribute  to  the  Mississippi.  That  river  has  its  course  across 
the  State  of  Illinois,  and  is  navigable  from  the  Mississippi  to 
Peru,  a  distance  of  rather  over  two  hundred  miles.  From 
Peru  to  Chicago,  a  distance  of  one  hundred  miles,  the 
Illinois  and  Michigan  canal  has  been  formed,  thus  uniting  the 
Mississippi  with  Lake  Michigan  and  the  Atlantic  ocean. 

The  district  watered  by  the  Illinois  river,  is  considered  to 
be  the  finest  in  the  Umted  States  for  corn,  both  in  point  of 
quality  and  extent  of  yield,  and  river  com  bears  a  premium 
price.  The  district  through  which  the  canal  passes  is  con- 
sidered inferior  com  land,  and  to  be  better  adapted  to  the 
growth  of  wheat.  Canal  corn  on  the  Chicago  market  forms, 
therefore,  a  different  classification,  and  commands  a  lower 
price.  Its  quality  is,  however,  better  than  the  corn  usually 
brought  to  Chicago  by  the  railroads,  and  which  is  known  as 
railroad  corn.  These  distinctions  are,  however,  no  doubt 
arbitrary  to  a  large  extent,  and  neither  place  of  growth  nor 
mode  of  transportation  will  be  considered  when  a  better  sys- . 
tern  of  inspection  shall  have  been  oi^nized.  Along  the 
whole  of  the  watercourse  from  the  Mississippi  to  Chicago, 
the  country  is  being  settled  rapidly,  and  every  year  adds 
incredibly  to  the  number  of  acres  brought  under  cultivation. 


'Ji 


11 


!N 


120 


THE  NORTH-WEST,  AND  ITS 


That  &ot  will  be  maniftat  by  the  following  corn  table  com- 
piled from  the  canal  returns  since  1848 : 

Afovement  of  Com  on  Illinois  and  Michigan  Canal. 


1848 516,216 bnshols. 

1849 754,>00       " 

1880 317,600       " 

1851 2,878,500       " 

1852 1,810,800       " 


1 853 2,490,600  bushels. 

1854 4,601,200       " 

1855  3,565,800       " 

1856 5,430,600       " 

1857 4,122,600       "« 


Much  less  attention  has  been  given  to  wheat  in  the  canal 
and  river  district,^  the  receipts  of  1857  being  little  more  than 
-twice  what  they  were  in  1848.  The  wet  late  spring  of  the 
present  year  and  of  last  year  will,  probably,  lead  to  more 
attention  hereafter  to  other  crops,  and  the  land  may  be 
benefited  by  the  change.  Wheat  comes  into  Chicago  most 
freely  by  the  Galena  road,  but  the  best  conditioned  parcels 
for  exportation  are  those,  unquestionably,  from  the  more 
southern  sections  of  tha  State,  where  harvesting  is  earlier, 
and  the  ripening  and  hardening  process  more  thorough  and 
complete.  The  rapid  development  of  the  Ghicago  wheat 
trade  will  appear  from  the  following  figures : 

Receipts  of  Wheat  at  Ghicago. 

1854 3,038,900  bushels.  I  1866 8,767,700  bunhels. 

1855 7,535,000       "         I  1867 10,554,700       " 

But  the  whole  of  the  Illinois  river  products  do  not  find 
their  way  to  Chicago.  St.  Louis  comes  into  competition, 
and  not  unfrequently  a  considerable  quantity  of  Chicago 
receipts  are  held  by  St.  Louis  parties,  over  and  above  what 
is  moved  down  the  river.  One  of  the  reasons  of  St.  Louis 
succeeding  in  the  competition  with  Chicago,  is  the  better  regu- 
lated system  of  grades  which  secures  to  the  good  farmer  the 
full  advantage  that  is  his  due ;  and,  of  course,  St.  Louis  is  a 
nearer  market  than  Chicago  to  the  points  more  adjacent  to 
the  Mississippi.  These,  as  a  general  thing,  will  ^eek  the 
down  river  markets,  and,  in  their  growth,  contribute  to  the 
rivalry  between  Chicago  and  St.  Louis.  Which  of  these 
will  ultimately  be  the  greatest  grain  market,  is  a  fruitless 
question  at  the  present  time,  and  it  is  enough  to  notice,  that 
both  are  making  rapid  progress,  and  liave  the  fairest  prospect 


nil: 


OUTLETS  TO  THE  OCEAN. 


121 


i^ 


of  adding  indefinitely  to  the  population  of  their  respective 
States,  and  to  their  producing  power. 

Recsiptt  of  Com  at  St.  Louis  from  the  lUiwAt  River. 
less 337,600  bnsheU.  |  1856* .433,600  btuhell. 

Receipts  of  Wheat  at  St.  Louis  from  the  Minois  River. 

1853 911,300  basheb.  |  1866* 1,188,300  buahelf. 

*  No  Ut«r  ntnmi  pablUud  by  the  St.  Lonli  Bowd  of  Tndfl. 

Beyond  the  junction  of  the  Illinois  with  the  Mississippi, 
we  have  Iowa,  Minnesota  and  Wisconsin,  all  of  which  are 
rapidly  filling  up,  send  having  lands  entered  and  brought 
into  cultivation.  For  the  produce  of  these  there  is  the 
Mississippi  route  to  St.  Louis,  railroad  routes  to  Milwaukee 
and  other  Wisconsin  ports  on  Lake  Michigan,  and,  finally, 
the  several  railroad  routes  to  Chicago,  into  which  the  trade, 
to  a  large  extent,  has  already  settled  down.  From  that  sec- 
tion of  the  country  the  exports  are  large,  and  will  be  a 
largely  increasing  quantity  every  year.  In  very  young 
communities  two  classes  only  are  supported :  the  hard  work- 
ing and  the  speculating,  and,  generally,  the  former  are  by 
far  the  more  numerous  body.  These  practical  working  men 
go  into  the  State  or  Territory  to  take  hold  of  what  pays  best, 
and,  as  a  matter  of  course,  take  to  land,  and  the  competition 
and  ups  and  downs  in  the  value  of  that  commodity  find 
employment  for  the  other  class.  As  a  consequence,  agri- 
culture will  be  much  extended  in  the  more  remote  sec- 
tions of  the  North-West,  and  every  year  will  add  largely  to 
the  supply  of  all  cereal  products.  It  is  conceivable,  that 
at  no  remote  period,  the  increased  production  of  wheat  on 
the  North-West  prairies  will  exercise  a  permanent  influence 
on  the  value  of  the  staff  of  life,  inasmuch  that  at  a  low 
price,  as  compared  with  a  high  price,  not  much  more  is  eaten, 
and  if  production  is  increased  in  a  greater  ratio  than  con- 
sumption, the  larger  quantity  always  on  the  market,  wUl 
determine  prices  in  favor  of  the  buyer.  This,  as  we  have 
seen,  would  not,  under  any  circumstances,  be  ruinous  to  the 
American  farmer,  and  as  it  would  absorb  less  of  the  national 
income  in  providing   the  first  necessary  of  life,  the  best 


122 


THE  NORTH-WEST,  AND  ITS 


resalts  to  all  would  follow.  One  series  of  consequences 
would  be  to  put  some  portion  of  land  out  of  cultivation  in 
England ;  to  increase  England's  purchases  of  breadstuffs  from 
us,  and  still  further  to  extend  our  import  trade. 

Passing  from  th6  tapper  Mississippi,  which  presents  an 
uninterrupted  navigable  channel  of  four  thousand  miles,  to 
the  Gulf  of  Mexico,  we  return  to  Chicago,  the  head  of  the 
navigation  of  the  St.  Lawrence  route,  to  the  seaboard. 

Taking  up  the  map  of  the  tJnited  States,  we  find  Chicago 
occupying  the  further  extremity  of  Lake  Michigan.  Follow- 
ing the  course  round  the  peninsula,  fontied  by  the  State  of 
Michigan^  the  city  of  Detroit  is  reached ;  subsequently  Lake 
Erie,  the  Welland  canal.  Lake  Ontario,  and  the  St.  Law- 
rence to  Montreal,  Quebec  and  the  Ocean.  The  total  dis- 
tance is  no  less  than  twelve  hundred  and  seventy-eight  miles 
to  Montreal.  That,  as  near  as  can  be,  is  the  distance  from 
St.  Louis  to  New  Orleans,  and  if  Chicago  produce  looks  for 
direct  purshasers  in  British  ports,  the  towns  on  the  Illinois 
river,  and  the  towns  on  the  Illinois  Central  Railroad  from 
Centralia,  south  to  Cairo  and  St.  Louis,  may  look  for  English 
buyers  also,  for  what  they  have  to  offer.  NeW  Orleans 
stands  in  precisely  the  same  relation  to  the  South*  as  does 
Montreal  to  the  North ;  but  the  circuitous  character  of  the 
Lake  course,  from  Chicago  to  Montreal,  suggests  the  short- 
ening of  the  distance  by  communicating  from  Lake  Huron  to 
Lake  Ontario,  without  passing  through  Lak6  Erie.  To  ac- 
complish that,  three  different  schemes  are  spoken  of.  One  of 
these — the  one  put  up  by  Toronto  interests — recommends  a 
cutting  from  Nottawasaga,  at  the  foot  of  the  Georgian  Bay, 
to  Lake  Simcoe,  thence  by  cuttings  along  water  courses  to 
the  mouth  of  the  Humber,  a  few  miles  distant  from  Toronto 
city.  The  estimated  cost  of  that  work  would  be  $26,000,000, 
but  it  is  questionable  whether  it  could  be  completed  for  that 
sum.  Between  Nottawasaga  and  Lake  Simcoe,  a  ridge  of 
mountains,  considerably  over  one  hundred  feet  above  the 
level,  would  have  to  be  cut,  and  they  extend  for  no  less  a 
distanpe  than  twenty-two  miles  on  the  route.  Other  serious 
engineering  difficulties  exist  on  the  lower  section,  and  al- 


ii >^ 


OnTLETB  TO  THE  OCEAN. 


128^ 


thoagh  these  are  represented  as  mere  mole  hills  by '  the 
Toronto  people,  the  scheme  is  not  received  with  much  favor 
by  the  Province. 

Another  route,  said  to  be  a  cheap  one,  and  the  best,  is  by 
the  river  Trent  and  Peterborough,  across  the  country  to, 
Sturgeon  Lake,  thence  across  the  country  to  Lake  Simcoe, 
and  thence  into  Georgian  Bay,  at  Victoria  harbor.  That 
route,  if  presenting  easier  gradients  than  the  other,  has  the 
fault  of  being  circuitous,  and  of  making  too  many  turnings 
for  an  extensive  trade,  and  practically  would  Ce  of  no  use,  if 
the  money  were  expended  for  it.  A  cheap  public  work  is 
unquestionably  what  is  needed,  but  cheapness  is  a  relative 
term,  and  it  might  be  really  cheaper  to  build  the  costly  Nottar 
wasaga  channel  than  to  have  upper  lake  vessels  shape  their 
course  to  lower  ports,  through  the  windings  and  intricacies 
of  a  crowd  of  irregular  minor  lakes.  So  long  as  there  is 
really  something  better  to  be  had,  the  ambitious  people  of 
the  Trent  must  remain  content  to  work  along,  improving 
their  lands  by  their  own  industry  and  skill,  and  never  ven- 
turing to  entertain  the  hope  that  Western  trade  is  to  find. an 
entrance  and  an  outlet  by  their  little  stream,  and  that  all 
they  have  will  be  increased  in  value  a  thousand  fold,  by  the 
building  of  a  ship  canal  from  the  Trent  to  the  Georgian  Bay. 
Such  a  consummation  is  never  likely  to  occur. 

The  third  and  only  other  route  proposed,  is  that  by  Lake 
Nipissing  to  the  Ottawa  river,  and  that  unquestionably  is  the 
most  practicable  and  direct,  and  probably  the  least  expen- 
sive of  the  three.  French  river  connects  Lake  Nipissing  and 
the  Georgian  Bay,  and  at  a  trifling  cost,  can  be  adapted  -to 
the  passage  of  the  largest  vessels  ever  likely  to  be  put  upon 
the  lakes.  From  Lake  Nipissing  to  the  Ottawa,  there  is 
only  a  narrow  neck  of  land,  and  the  channel  of  the  river 
can  be  adapted  readily  to  the  requirements  of  any  trade. 
By  that  route,  lower  lake  voyages  would  be  made  in  half  the 
present  time,  and  four  hundred  and  fifty  miles  of  distance 
saved.  All  that  can  be  said  against  it  is,  that  it  would  open 
a  week  or  fortnight  later  in  the  spring,  and  close  a  week  or 
fortnight  later  in  the  iall.    The  force  of  that  objection,  even 


124 


THE  NORTH-WEST,  AND  ITS' 


if  better  founded  than  it  is,  is  not  verj  clear  when  in  the 
opening  of  the  upper  Ottawa,  the  best  lumber  district,  pos- 
sessed by  Canada,  would  be  developed  fully.  The  Lady 
Elgin  makes  her  spring  visit  to  the  higher  latitude  of 
Superior  City,  before  the  Welland  or  the  Erie  canal  has  been 
opened,  and  it  would  be  strange  indeed,  if  French  river,  and 
the  Ottawa,  remained  ice-bound,  when  ice  generally  had  dis- 
appeared, and  canal  banks  had  settled  down,  and  been  fit  for 
water,  after  the'  final  thaw.  The  statement  is  not  more  mis- 
leading than  absurd,  and  in  the  opening  of  the  Ottawa,  Canar 
dian  industry  and  settlement  would  receive  a  greater  impetus 
than  they  have  over  done. 

But  in  the  opening  of  the  Ottawa  route,  new  issues  aro 
at  once  raised,  which  must  be  noticed.  That  route  would 
act  injuriously  on  the  Buffalo  and  Oswego  trade,  and 
until  Montreal  could  move  produce  to  the  Hudson  river  and 
New  York,  and  send  more  stuff  direct  to  Europe,  the  Ottawa 
route  would  practically  be  of  little  use.  Produce,  in  its 
movement,  would  seekj  naturally,  the  cheapest  l.n  3  of  trans- 
port, but  the  transportation  must  not  be  partial,  but  essen- 
tially thorough  and  complete.  There  must  be  no  going  so 
far  and  no  farther,  but  in  every  ramification,  the  new  route 
must  not  be  less  perfect  than  every  other.  Vessels  from 
Chicago  by  Lake  Nipissing  and  the  Ottawa,  should  not  break 
bulk  until  alongside  the  ocean  vessel  at  Montreal,  or  until 
the  junction  of  Lake  Champlain  and  the  Hudson  river  had 
been  reached.  These  are  the  conditions  to  the  successful 
workings  of  the  Ottawa,  or  even  of  the  Nottawasaga  route, 
and  Canada  is  not  yet  ripe  for  so  great  an  undertaking. 
Other  internal  works  cry  as  loudly  to  be  looked  to,  and  have 
better  grounded  claims  on  the  Provincial  Treasury.  No 
benefit,  commensurate  with  the  great  outlay,  would  result  to 
Canada,  as  if  the  cost  of  transport  were  reduced,  precisely 
that  reduction  more,  would  the  price  of  Chicago  products  be 
advanced.  Canadian  loafers  would  find  employment  at  the 
locks,  or  fill  offices  in  connection  with  the  works.  Canadian 
and  American  vessels  of  a  larger  class  would  be  built  at  St. 
Lawrence  and  Lake  Erie  ports,  and  ever  so  many  carpenters 


OUTLBIS  TO  THl  OCBAN. 


125 


be  temporarily  employed ;  but  to  tend  canal  gates,  oocbpjr 
canal  offices,  navigate  vessels  on  the  lakes,  or  even  build 
them,  is  not  the  most  productive  way  of  being  employed  in  a. 
new  country.  Every  new  man  and  new  interest  would  be 
withdrawn  from  something  else,  and  so  far,  not  the  least 
benefit  would  be  gained,  but  positive  injury  might  be  done, 
and  means  previously  employed  productively,  might  have  been 
withdrawn  and  invested  in  the  new  channel  and  sunk  forever. 
As  things  are  at  present  constituted,  the  Canadian  and  the 
American  buyer  of  produce,  on  the  Chicago  market,  take  che 
cost  of  transport,  in  every  case,  into  account,  and  pay  the 
more  or  less  for  wheat  or  com  or  any  other  thing."  The 
question  in  one  case  is  the  rate  of  freight  from  Chicago  to 
Montreal,  the  probable  price  to  be  realized,  and  the  probable 
advantage  to  be  gained.  In  another  case  it  is  the  rate  of 
freight  to  Buffalo,  or  Oswego,  or  New  York,  the  probable 
price  to  be  realized,  and  the  probable  advantage  to  be  gained. 
In  point  of  fact,  therefore,  the  western  produce  operator  has 
no  concern  with  the  cost  or  means  of  transport.  It  is  a 
farmers'  question  only,  and  with  the  means  of  transport,  now 
existing,  from  the  West  to  every  seaboard  point,  it  could  be 
shown  with  little  trouble,  that  for  the  present  also,  neither 
the  government  of  Canada  nor  that  of  the  United  States,  can 
be  called  upon  to  respond  any  further.  The  farmers  of  the 
United  States  and  Canada,  are  the  owners  of  the  soil,  and  at 
the  lowest  price  which  wheat  has  touched  for  several  years, 
they  have  earned  more  than  an  avei'age  profit,  and  during 
periods  of  high  prices  they  have  themselves  to  blame,  if  they 
did  not  rapidly  increase  in  wealth.  Under  such  circum- 
stances, is  it  fair  to  that  numerous  class  who  make  their 
living  in  a  more  arduous,  and  less  remunerative  sort  of  way, 
that  the  government  should  contract  loans  and  impose  taxes 
for  them  to  pay,  that  the  farmer  should  be  made  better  than 
he  is  ?  If  it  is  politic  to  encourage  increased  occupation  of 
the  soil,  beyond  the  premium  which  the  soil  offers  of  itself,  it 
can  be  done  not  less  effectually  in  another  way.  Why  may 
not  the  market  price  of  unimproved  land  be  legally  saleable 
within  a  certain  price  only,  that  people  may  settle  down  to 


126 


THE  NOmH-WBBT,  AND  m> 


agrioullonl  pursuits  in  any  particular  section  they  may  have 
a  fancy  to  ?  That  ultimately,  would  induce  too  large  accet- 
sions  to  the  agricultural  class,  and  grants  and  sales  of 
national  domain  cannot  be  made  subject  to  such  a  clause,  a 
single  day  too  soon.  It  was  well  enough  for  government  to 
do  what  has  been  done  to  open  up  the  resources  of  the  North- 
West  to  the  world,  but  the  limit  of  governmental  action  has 
been  reached,  and  private  enterprise,  aided  by  grants  of 
land,  as  in  the  c^e  of  railroads,  should  do  the  rest. 

But  there  is  another  weak  point  involved  in  the  opening  of 
the  Ottawa  route,  and  that  is  the  hold  which  Now  York  has 
of  the  English  trade.  It  is  conceivable  that  were  the 
Ottawa  route  open,  that,  for  European  interests,  large  ship- 
ments would,  as  heretofore,  continue  to  be  made  to  Buffalo. 
Considerable  time  would  elapse  between  the  shipment  of 
wheat  or  flour  at  Chicago  and  the  delivery  in  New  York  by 
the  Ottawa  and  Caughnawagna  routes,  while  Buffalo  occu- 
pies a  position  and  relation  to  New  York  which  no  other  city 
does,  and  these  advantages  are  borne  by  Buffalo  produce. 
For  example,  a  favorable  turn  takes  place  in  the  New  York 
produce  trade  which  is  not  likely  to  be  of  long  duration. 
The  Buffalo  holder  of  flour,  telegraphs  to  his  agent  in  New 
York  to  place  so  many  barrels  of  flour  upon  the  market  sub- 
ject to  delivery  four  days  afterward.  The  sale  is  at  once 
effected  in  New  York,  and,  in  the  course  of  an  hour  from  the 
dispatch  of  the  first  message,  the  flour  is  being  carted  from 
the  Buffalo  warehouse  to  the  railroad  depot,  and  on  the 
morning  of  the  fourth  day  the  flour  is  delivered  in  New 
York  city  to  the  purchaser,  and  the  same  day  the  Buffalo 
merchant  puts  his  sight  draft  for  the  amount  through  the 
bank.  That  may  be  done  in  other  cities,  but  it  is,  essen- 
tially, a  Buffalo  "  institution,"  and  these  facilities  and  that 
proximity  to  New  York  will  always  influence  ^he  movement  of 
every  kind  of  produce  in  that  direction.  Neither  Montreal,  nor 
any  other  Canadian  city,  is  in  such  a  position  for  the  prosecu- 
tion of  Eastern  trade,  and  never  can  be  ;  and,  for  European 
trade,  freights  from  the  St.  Lawrence  are  invariably  twice 
the  amount  that  freights  are  from  New  York.    That  last 


V 


ODTLrrS  TO  THB  OOIAM. 


127 


fault  Uf  howeTer,  of  easy  remedy,  and  one  day's  action  ^and 
organization,  on  the  part  of  the  leading  men  of  Montreal, 
woald  go  far  t  divert  a  greater  share  of  English  emigra- 
tion to  the  St.  Lawrence,  and  provide  thereby  an  outward 
freight  to  sailing  vessels.  " 

The  communications  from  the  North- West  to  tHe  South 
and  Eastern  seaboard,  instead  of  being  imperfect,  as  would 
seem  to  be  implied  by  continued  agitation  on  the  subject,  are, 
perhaps,  as  near  perfection  as  they  can  over  possibly  attain. 
Taking  Chicago  as  a  centre,  we  have  the  following  channels 
of  communication  with  the  Mississippi  ^aod  New  Orleans : 
The  Illinois  Central  Railroad  have  a  direct  line  to  Cairo,  on 
the  Mississippi,  and  from  Cairo  they  have  an  independent 
line  of  boats  to  New  Orleans.  One  of  the  most  perfect 
organizations  for  the  movement  of  freight  and  passengers 
from  one  point  to  another  that  perhaps  exists  in  the  United 
States,  is,  therefore,  to  be  found  from  Chicago  to  New 
Orleans,  and  over  that  connection  the  whole  North-West  and 
Canada  must  sooner  or  later  supply  themselves  with  sugar 
and  molasses,  and  other  staple  grocery  products.  By  the 
same  route  there  is  no  reason  why  the  Eastern  cotton  fac- 
tories should  not  supply  themselves  with  raw  material  from 
Memphis  and  other  points.  To  move  cotton  from  Memphis 
to  Cairo,  thence  over  the  Illinois  Central  and  the  Eastern 
roads,  should  be  less  expensive  transportation  than  to  move 
the  cotton  down  to  New  Orleans,  or  to  ship  by  rail  from 
Memphis  to  Savannah,  and  there  re-ship  for  Massachusetts 
and  tHe  interior.  In  1856  some  three  thousand  bales  of 
cotton  were  so  moved  from  Memphis,  but  the  trade  was 
abandoned  before  being  fully  organized.  It  is,  however, 
practicable,  and  a  haulage  profit  over  and  above  the  tear 
and  wear  would  be  realized  by  every  road  over  which  the 
traffic  passed,  and,  in  these  dull  times,  another  trial  should 
be  promptly  made. 

The  following  are  the  present  rates  of  freight  over  the 
Illinois  Central  Road  to  New  Orleans : 


I   I    ill!  I- 


128  THE  NORTH-WEST,   AND    IT8 

Illinois  Central  Freights  from  Chicago  to  New  Orleans,  and  vice 

versa. 

Grain,  per  60  lbs.,  from  Chicago  to  Cairo  by  rail,  thence  per  steam  on 
Mississippi  river  to  New  Orleans $  .30 

Bacon,  Lard,  Beef,  &c.,  per  100  lbs.,  from  Chicago  to  Cairo  by  rail, 
thence  per  steam  on  Mississippi  river  to  New  Orleans .50 

Sugar,  Molasses,  Coffee  and  general  groceries,  per  100  lbs.,  from 
New  Orleans  to  Cairo  by  steam  on  Mississippi  river,  thence  per 
rail  to  Chicago 60 

Time  on  this  route  from  five  to  ten  days  between  Chicago  and  New  Orleans. 

Besides  the  Illinois  Central  Eailroad  and  its  connections 
south,  the  St.  Louis,  Alton  and  Chicago  Railroad  take  freight 
and  passengers  to  St.  Louis,  whence  there  are  numerous  inde- 
pendent steamers  down  the  river.  Some  four  or  five  other 
railroads  run  also  from  Chicago  to  the  Mississippi,  and  make 
connection  with  boats  for  New  Orleans.  So  far,  therefore,  as 
the  southern  outlets  of  the  North- West  are  concerned,  no 
possible  improvement  can  possibly  be  made,  and  it  is  time  the 
world  should  know  such  to  be  the  case. 

Stretching  eastward  from  Chicago,  the  two  great  lines  of 
travel  are  the  Michigan  Central  and  the  Michigan  Southern 
Railroads  ;  the  former  running  to  Detroit,  and  connecting  with 
the  Great  Western  of  Canada,  and  with  New  York,  Boston 
and  Philadelphia  at  the  Suspension  Bridge.  The  latter  road 
exteilds  to  Toledo,  and  connects  with  the  Lake  Shore  road  to 
Cleveland  and  Buffalo,  and  from  Buffalo  connects  with  all  the 
eastern  railroads.  These  roads  carry  passengers  and  freight 
to  and  from  the  seaboard  cities,  and  when  the  Lake  season 
closes,  the  carrying  business  of  the  North-West  passes  to 
them,  and  provisions,  hides  and  live  stock,  are  sent  forward 
to  Buffalo  and  New  York. 

The  Central  and  Southern  roads  do  not,  however,  have  a 
monopoly  of  the  freight  carrying  business,  between  Chicago 
and  the  east.  The  Pittsburgh  and  Fort  Wayne  Railroad, 
connecting  with  the  Pennsylvania  Central,  forms  the  most 
direct  and  shortest  route  from  Chicago  east,  and  cannot  fail 
ultimately  to  attract,  by  far  the  largest  portion  of  western 
freight.  The  special  advantage  of  the  Fort  Wayne  road  to 
freight  shippers,  is  the  prospect  of  quick  dispatch,  as  the 
Pennsylvania  Central  is  less  likely  to  be  blocked  with  mer- 


OUTLETS  TO  THE  OCEAN. 


129 


ive  a 
icago 
road, 

most 
)t  fail 
stern 
ad  to 
the 

mer- 


,s 


chandise  and  produce  than  the  trunk  railroads  of  New  York 
State.  Besides  carrying  freight  to  New  York  city,  like  the 
other  roads,  its  own  proper  terminus  ijs  Philadelphia,  and 
Philadelphia  is  in  close  connexion  with  Baltimore  in  Mary- 
land. 

But  in  addition  to  these  through  Eastern  railroad  routes, 
there '  are  combined  routes  of  lake  and  railway,  not  much 
behind  in  point  of  time,  in  taking  goods  forward,  and  involvr 
ing  marked  economy  in  the  charge  of  transportation.  The 
Grand  Trunk  Railroad  of  Canada,  is  the  greatest  corporation 
of  that  kind,  and  its  western  terminus  has  been  located  per- 
manently in  Chicago.  From  Chicago,  one  of  the  best  line  of 
steamers  on  the  lakes  carries  forward  freight  and  passengers 
to  CoUingwood  on  the  Georgian  Bay,  and  from  CoUing- 
wood  to  Toronto,  freight  and  passengers  are  passed  over  the 
Ontario,  Simcoe  and  Huron  Railroad.  At  Toronto  a  junction 
is  made  with  the  Grand  Trunk  road,  and  Montreal  and  Quebec 
are  but  a  few  hours  fUrthei!'  travel.  Besides  connecting  with 
Chicago  by  way  of  CoUingwood,  the  Grand  Trunk  Railroad 
can  move  freight  and  passengers  over  the  Michigan  Central 
or  the  Michigan  Southern  to  Detroit,  and  at  Detroit  use  the 
Great  Western  of  Canada,  until  its  own  connection  has  been 
reached.  In  another  year  the  Grand  Trunk  extension  will 
be  complete  to  Samia,  and  from  Sarnia  to  Detroit,  surveys 
have  been  made  for  a  branch  along  the  St.  Clair  river  to  De_ 
troit,  and  that  finished,  the  Grand  Trunk  and  the  Great 
Western  will  both  compete  for  the  Chicago  trade  over  their 
respective  roads. 

From  Montreal  and  Quebec  the  Grand  Trunk  Railroad  runs 
through  the  State  of  Maine  to  Portland,  and  in  the  winter 
connects  there  with  the  Montreal  and  Liverpool  line  of 
steamers.  In  the  summer  these  steamers  enter  the  St.  Law- 
rence to  Quebec,  and  form  a  fortnightly  ocean  line  connecting 
back  to  Chicago  either  by  railroad  or  by  propellers  on  the 
St.  Lawrence  and  the  lakes.  The  following  is  the  Grand 
Trunk  tariflF  from  Chicago  to  Montreal  and  Liverpool,  this 
28th  May,  1858 : 
9 


180 


THE  NOBTO-WEBT,  AMD  ITS 


Orand  Thmk  Freights  from  Ohieago. 


▲BTMUM,  BTO. 


n^r,  p«r  bbl 

Foric  and  Beef,  per  bbl.. . 
Chrain  in  bags,  per  60  lbs. . 


MOHTBIAI.  TIA 
OOLUHOWOOD. 


•0.60 
.90 
.90 


MOIITBBAI. 


10.80 

1.90 

SO 


MOHTBEAI.  TO 
UTBBPOOI,. 


$1.00 

l.SO 

.95 


Orand  Ihmk  Throwgh  Freights  from  Chicago  to  Liverpool  Direct. 

Floor,  per  barrel,  by  ateam  to  CoUingwood,  thence  per  railway  to  Mon- 
treal and  ocean. 'steamer  to  Lirerpool— time,  twenty  to  twenty-fiTe 
days $1.60 

Hoar,  per  barrel,  by  railroad  to  Montreal,  thence  pier  ocean  steamer  to 
larerpool— -time,  fifteen  to  twenty  days 1 .80 

Beef  and  Foric,  per  barrel,  by  steam  to  CoUingwood,  thence  per  rail  to 
Montreal,  and  ocean  steamer  to  LiTcrpoof— time,  twenty  to  twenty- 
five  days , 9.40 

Beef  and  Pork,  per  barrel,  by  railroad  to  Montreal,  thence  per  ocean 
steamer  to  Liverpool — time,  fifteen  to  twenty  days 9.70 

Grain  in  bags,  per  60  lbs.,  by  steam  to  CoUingwood,  thence  per  rail  to 
Montreal  and  ocean  stefm^r  to  Liverpool— time,  twenty  to  twenty- 
five  days 45 

Qrain  in  bags,  per  60  lbs.,  by  rail  to  Montreal,  thence  per  ocean  steamer 

to  Liverpool — time,  fifteen  to  twenty  days .55 

In  the  course  of  next  Etpring,  a  compeiing  line  with  the 
Grand  Trunk  wiU  be  opened,  by  the  establishment  of  a  line 
of  Lake  propellers  from  Chicago  to  Gk)derich,  on  the  south- 
eastern shore  of  Lake  Huron.  At  Goderich,  freight  and 
passengers  will  be  placed  aboard  the  BuAGeiIo  and  Lake  Huron 
Railroad  cars,  and  run  across  Canada  to  Buffalo,  where  a 
market  can  be  had,  or  canal  or  railroad  transportation  to  New 
York.  In  the  winter  season,  and  at  present,  that  Buffalo 
road  id  already  open,  taking  freight  and  passengers  over  the 
Michigan  Central  and  Michigan  Southern,  from  Chicago  to 
Detroit,  then  running  over  the  Great  Western  of  Canada  to 
Paris,  the  connecting  point  of  the  Buffalo  and  Lake  Huron 
road.  That  is  already  a  favorite  road  for  stock  and  freight, 
from  its  giving  the  command  of  the  Buffalo  and  Eastern 
markets,  and  when  its  Goderich  extension  has  been  finished, 
and  its  propellers  running  on  the  Lakes,  it  will  influence  a 
large  amount  of  traffic,  and  go  far  to  reduce  interior  freights 
to  the  lowest  point  that  they  can  ever  go. 

Besides  these  combined  lake  and  railroad  means  of  trans- 
port to  the  East  and  Europe,  numerous  independent  lines  of 


ODTLBna  TO  THB  OCEAN. 


181 


.45 


.55 


trane- 
ines  of 


large  propellers,  connect  Chicago  with  every  leading  point 
an  all  the  Lakes,  and  run  down  as  low  as  Montreal,  and 
these  propelleirs  can  usually  be  chartered  very  low  for  pro- 
duce. The  average  rate  for  wheat  from  Chicago  to  Montreal 
is  not  over  fifteen  cents  a  bushel,  and  taking  ocean  steam 
freight  from  Montreal  to  Liverpool  in  steamers,  bags  at 
twenty-five  cents  a  bushel  more,  we  have  the  following  pre- 
sent margin  on  wheat  shipments  from 'Chicago  to  the  other 
side,  the  voyage  from  Chicago  to  Liverpool  not  exceeding 
five  and  twenty  days : 

Wheat  in  Liverpool,  6«  per  70 1I».,  or tl  .36  per  60  lbs. 

Wheat  in  Chicago 68   "      " 

"Is, 

Steam  freight  to  Montreal  and  steam  freight  to  LiTerpool, 
40  cents  in  all 40 

Margin  for  profit  and  charges. SS  per  bnshel. 

Li  addition  to  these  varied  and  efficient  means  of  trans- 
port, from  Chicago  to  the  ocean,  Chicago  owns  a  fleet  of  sail- 
ing vessels,  whose  collective  tonnage  would  not  disgrace  an 
ocean  port,  and  the  sailing  vessels  of  every  port  on  the  lakes 
make  Ohicago  their  Ultima  Thule  ahd  starting  point  as  fre- 
quently as  tiiey  can.  The  following  is  the  official  custom 
house  reports  for  1857,  and  previous  years : 

NwiAet  and  Tonnage  of  Vessels   arrived  at  the  Port  of  Chicago 
for  the  Season  of  1857. 


Jiarch  
pril 

May , 

Jane , 

July 

Angnist .... 
September... 
October. . . . 
November  . 
December. . 


Stmrs, 


30 
50 
49 
41 
46 
43 
34 
12 
3 


Totak..    306 
Arrivals  unreported, 


Props. 


38 
56 
93 
96 
96 
109 
91 
41 
6 


Sail. 


16 
348 
800 
900 
923 
917 
735 
689 
269 

36 


618     I     5,43S 
estimated,). 


Total. 


Totals.... 
Total  m  1856. 
Total  in  1855. 
Total  in  1854. 


19 

306 

906 

1,041 

1,060 

1,059 

886 

714 

323 

44 

6,357 
.1,300 

.7,557 
.7,338 
.6,610 
.5,031 


Tonnage. 


3,336 

16,813 

208,500 

318,108 

323,700 

373,105 

327,785 

303,673 

74,485 

11,309 

1,460,613 
293,800 

1,763,513 
1,545,379 
1,608,845 
1,093,644 


Men. 


124 
4,795 
6,869 
8,983 
8,899 
10,136 
8,737 
7,287 
3,235 

451 

61,458 
,7,800 

-r4— 

68,^58 
65,531 


182 


THE  N0BTH-WE8T,  AND  ITS 


Finally,  two  years  ago,  the  schooner  "  Dean  Richmond," 
left  Chicago  ibr  Liverpool,  and  last  year  the  schooner  "  Ma- 
deira Pet "  made  the  voyage  from  Liverpool  and  returned 
there  again.    Last^  year  the  G.  J.  Kershaw  left 'Detroit  with 
staves  and  lumber,  and  during  the  present  season,  not  fewer 
than  a  dozen  other  lake  crafts  will  have  left  Detroit  in  the 
lumber  trade,  thus  demonstrating  that  the  t)utlets  of  the 
North-West  to  the  seaboard  and  the  ocean,  are  in  an  advanced 
and  business  state.    To  be  sure,  there  is  not  water  above 
Quebec  for  the  Leviatharij  but  perhaps  it  is  more  profitable 
not  to  seek  ocean  monsters  further  up,  but  to  take  the  pro- 
duce to  them.    Be  that  as  it  may,  the  present  is  an  unpropi- 
tious  time  to  sink  capital,  in  investments  of  any  kind,  and 
there  is  abundant  lake  craft  ready  to  be  made  available  in 
any  way ;  and  with  respect  to  the  development  of  Western 
trans-atlantic  trade  with  Europe,  it  is  to  be  observed  that 
with  the  dompletion  of  the  Victoria  Bridge  at  Montreal,  ves- 
sels have  to  choose  between  the  lakes  and  the  ocean.    The 
centre  arch  of  the  bridge  is  only  sixty  feet  in  height  above 
the  water,  and  as  vessels  without  keels  are  best  suited  for 
the  lakes,  and  vessels  with  keels  only  suited  for  the  ocean, 
there  must  be  a  complete  division  of  the  trade.    That  however 
(Tannot  be  looked  upon  as  ofTering  the  slightest  obstacle  to 
its  ultimate  development,  but  should  be  regarded  rather  as 
conducing  to  its  establishment  on  a  sure  and  paying  basis. 
It  would  never  pay  large  ocean  vessels  to  make  a  passage 
up  the  lakes ;  and  the  outward  voyage  of  the  Madeira  Pet 
from  England,  and  return  from  Chicago,  are  proof  positive 
that  small  vessels  would  never  earn  freight  on  the  through 
trade    The  "  Madeira  Pet"  was  from  the  English  channel 
trade,  in  which  the  fastest  little  craft  afloat  are  unquestion- 
ably to  be  found,  and  yet  the  expense  of  the  voyage  to 
Chicago  and  back  to  Liverpool,  almost  absorbed  the  whole 
return  from  her  outward  and  homeward  cargo.    Need  we 
say  that  such  a  trade  would  never  do,  and  if  it  is  to  be  done 
at  all,  with  profit,  it  must  be  done  in  another  way.    That 
other  way  must  be  by  a  break  at  Montreal,  and  so  far  .as 
grain  is  concerned,  English  buyers  will  insist  on  shipments 


V 


OUTLETS  TO  THB  OCEAN. 


188 


by  lake  propellers  only,  unless  the  GluQago  shipping  price  is 
unnsaally  and  very  low. 

A  question  of  commanding  interest  to  the  St.  Lawrence 
route  here  presents  itself,  and,  in  so  far  as  if  relates  to  the 
present  subject,  must  be  noticed  before  we  proceed  fhrther. 
The  Erie  canal,  Arom  the  jiorth  shore  of  New  York  State  to 
the  Hudson  riyer  at  Troy  and  Albany,  forms  the  great  sum^ 
mer  competing  route  with  the  St.  Lawrence  for  Western  grain, 
and,  hitherto,  has  attracted  the  lion's  share.  This  year  an 
enlargement  of  the  canal  has  been  completed,  and  still 
further  enlai^ements  are  in  progress.  The  capacity  of 
canal  boats  can,  therefore,  Ue  much  increased,  and  the 
expense  of  moving  these  not  increasiing  in  the  same  ratio, 
canal  freights  will  be  rapidly  reduced.  Simultaneously 
with  the  canal  enlargement,  a  reduction  of  canal  tolls  has 
been  made,  and  that  reduction  so  far  diminishes  the  further 
cost  of  transport.  A  diminution  of  the  cost  of  transport  to 
the  seaboard,  other  things  being  equal,  of  course,  enables  the 
wheat  buyer  to  pay  more  for  wheat.  Observing,  therefore, 
that  the  reduction  of  canal  freight  acts  on  the  Chicago 
market,  and  so  far  adds  to  the  price  of  wheat,  and  has  no 
iiifluence  on  the  rate  of  transportation  on  the  lakes,  we 
are  led  to  the  conclusion  that  where  similar  diminution  in 
the  rate  of .  transportation  on  other  routes  has  not  been 
made,  that  the  diminution  to  its  full  extent  acts  as  a  pre- 
mium in  favor  of  the  particular  route  in  which  it  has 
been  made.  For  -example,  the  effect  of  the  enlargement  of 
the  Erie  canal,  and  the  application  of  steam  to  the  propulsion 
of  canal  boats,  may  ultimately  reduce  the  rate  of  canal  trans- 
portation to  the  extent  of  five  cents  a  bushel.  Supposing, 
for  illustration,  that  such  a  result  were  brought  about,  and 
that  no  improvement  whatever  was  made  on  transportation  by 
the  St.  Lawrence  route,  then  the  shipper  by  the  Erie  cansd 
could  pay  five  cents  more  a  bushel  in  Chicago  for  the  wheat 
he  purchased,  while  the  shipper  by  the  St.  Lawrence  could 
not  afford  to  do  so,  other  things  being  equal.  But  if  the  St. 
Lawrence  shipper  could  get  freight  to  Montreal  at  a  reduc- 
tion in  favor  of  Montreal  and  against  Buffalo  to  the  extent 


134 


THE  NOBTH-WEST,  AND  ITS 


of  the  reduction  on  the  canal,  he  would  be  reinstated  in 
his  former  position.  But  such  an  expectation  is  absurd; 
and  if  the  tendency  of  prpduce  was  to  move  down  the 
Erie  canal  before  the  reduction  of  Erie  canal  ratea,  that 
tendency  must  be  greater  now  than  before,  and  Canadians 
must  be  up  and  doing,  or  direct  Western  trans-aUantic  trade 
promises  to  come  to  nothing. 

One  present  means  of  restoring  the  equilibrium  between 
the  contending  routes,  would  be  in  the  temporary  abrogation 
of  the  Welland  and  St.  Lawrence  tolls,  providing  for  these 
interests  in  the  meantime  from  the  ProvinciaV  consolidated 
fund ;  and  an  ultimate  means  *of  retaining  a  large  portion  of 
the  trade  would  be  fom  d  in  a  vigorous  Montreal  organization 
of  direct  trade  between  Chicago  and  Liverpool.  On  these 
resources,  Canada  can  at  once  fall  back,  and  it  cannot  do  so  a 
single  day  too  soon.  Every  day's  inactivity  is  a  public  loss, 
and  perhaps  at  no  previous  period  has  there  been  so  good  a 
chance  of  branching  out  successfully  in  a  new  direction.  It 
is  not  when  things  are  brisk  and  satisfactory  that  experiments 
are  so  likely  to  be  tried,  as  when  -  business  difficulty  or  em- 
barrassment prevails.  People  then  look  around  them  for 
relief,  and  are  easily  influenced  by  a  fair  prospect  of  success. 
Just  now,  every  business  interest  suffers,  and  there  would 
speedily  be  hope  of  better  times,  if  the  advantages  of  a  new 
market  were  presented,  and  brought  practically  within  our 
reach.  Could  not  that  be  done  by  Montreal  ?  Could  not 
Montreal  merchants  give  Chicago  quotations  of  wheat  and 
corn  and  flour  to  their  customers,  in  Europe,  and  leave  the 
risk  of  inland  transportation  to  bo  run  by  them?  Tlie  grain 
trade  is  not  always  on  the  downward  move,  but  there  are 
reactions  sometimes,  which,  in  a  brief  space  of  time,  would 
go  far  to  diminish  freight,  lliat  risk  would  be  nothing  new, 
and  may  as  well  be  taken  on  the  inland  lakes  as  elsewhere. 
Could  they  not  also  bring  the  American  shipper  into  commu- 
nication with  the  import  houses  of  London,  Liverpool  and 
Glasgow,  and  be  the  medium  through  which  secure  and  lib- 
eral advances  could  be  had  on  foreign  shipments,  from 
Chicago,  and  at  the  same  time  could  they  not  cooperate  with 


\ 


OUTLETS  TO  THE  OCH&N. 


186 


the  Grand  Tnmk  Railroad,  in  diverting^^  immigration  to  the 
St.  Lawrence  highway,  and  in  feeding  ocean  steamers  and 
sailing  vessels  with  freights  of  inland  produce  ?  These  are 
the  raw  material  for  building  the  St.  Ijawrence  routip,  and 
keeping  up  a  healthy  rivalry  with  the  Erie  canal  and  Hudson 
river,  to  the  great  advantage  of  all  concerned ;  and  if  Mon- 
treal will  only  take  a  firm  and  resolute  hold,  the  St.  Law- 
rence route  may  still  offer  advantages  equivalent  to  the  other. 
It  is  something  now-a-days  to  have  stuff,  once  in  motion, 
reach  its  destination  in  the  quickest  way,  and  a  voyage  from 
Chicago  to  the  Mersey,  need  ngt  cover  a  greater  interval 
than  that  consumed  at  present,  in  moving  stuff  froun  Chicago 
to  New  York.  That  would  be  a  great  consideration,  and  in 
the  estimation  of  a  Mark  Lane  factor,  outweigh  a  fek  cents 
difference  in  the  cost  of  transport.  Far  better  to  do  busi- 
ness on  these  terms,  than  to  leave  it  undone,  in  the  exp^ta- 
tion  that  sooner  or  later,  water  courses  will  be  opened,  whiii^ 
will  sustain  the  St.  Lawrence  route  without  an  effort.  ^ 

Leaving  the  points  and  questions  raised  by  the  two  rival 
routes,  from  Chicago  to  the  Eastern  seaboard,  to  be  further 
amplified  and  digested  by  the  reader,  it  remains  to  notice  the 
peculiar  local  features  of  the  Chicago  trade. 

In  the  first  place,  a^  large  amount  of  capital  has  been 
invested  in  storehouses  and  machinery,  for  the  receipt  and 
shipment  of  the  great  staple  products,  wheat  and  com. 
Farmers  and  shopkeepers  in  the  country  can,  therefore,  calcu- 
late at  all  times,  on  having  their  stuff  cared  for,  and  handled 
in  the  cheapest  way,  should  they  send  it  to  Chicago.  Through- 
out the  season,  therefore,  the  daily  receipts  in  store  are 
heavy,  and  the  country  owners  give,  brokers  the  power  of 
sale,  at  a  fixed  price.  Sometimes  these  brokers  make  ad- 
vances, and  have  the  power  of  sale  at  their  own  discretion. 
Under  these  circumstances,  the  amount  of  grain  in  store  in 
Chicago  is  not  always  pressing  on  the  market;  and  some- 
times, really  fair  margins  do  not  exist  on  forward  shipments 
to  any  point.  The  country  owner  of  the  stuff  may  have  his 
own  views  as  to  the  future  range  of  prices,-  and  may  hold  on 
to  it,  until  these  opinions  have  been  verified,  or  have  proved 


/ 


//♦ 


186 


i 


Tat  NOBTBhWEBT,  AND  ITS 


to  be  mistaken ;  and' the  city  broker  who  has  made  advances 
maj  have  his  opinions,  and  prefer  to  send  forward  what  he 
has  on  his  own  account.  With  either  of  these  practices,  the 
public  properly  have  no  concern ;  but  the  real  practical  effect 
of  their  operation  is  not,  uofrequently,  to  make  Buffalo  or 
New  York  the  really  better  market  for  outside  parties  to 
pux'chase  in.  The  following  tables  show  the  state  of  the 
wheat  trade  during  1857  : 


/ 


Bdativ  Prica  ofCSacago  Whtat  in  Chicago  and  Buffalo. 
/                        1867. 

*                         OmOAOO.  BOTTAM. 

May ../'. $1.06tol.l0  $1.16tol.28 

Jone^. 1.21tol.25  1.30 

July». 1.26tol.27  1.35 

AijIgDSt 1.12tol.U  1.20tol.32 

September .92  to    .96  .85  to  1.02 

October  73  to    .77  .80 

/November ••••->« 68  to    .69  .77  to  ..82 

/   December 53  to    .54  .78  to    .80 

f : — 

Projit  and  Charges,  margin,  on  Wheat  Shy)ments  from  Chicago  to  Buffalo. 

1867. 

omoAOO.     BurrAio.     rmoEi.  mamir.      loss. 

May $1.08       $1.22           4  10 

June 1.23         1.30           3^  8} 

July 1.26^        1.35           3f  4} 

August 1.18         1.26           4  9 

September 94           .93^         5  .   .         5^ 

October 75           .80           6  ...         1 

November 68^         .79|          7^  3^         .. 


To  make  the  Chicago  grain  trade  really  profitable,  some- 
thing more  is,  therefore,  needed,  than  to  make  daily  visits  to 
the  Chicago  Board  of  Trade.  Parties  must  put  themselves 
into  the  position  of  advancing  to  country  senders,  or  make 
country  purchases  and  collections,  in  common  with  the  coun- 
try shopkeepers.  So  soon  as  that  is  done,  more  fully  than  it 
is,  the  trade  will  assume  a  healthier  and  better  state ;  and 
Canadians  and  others  cease  to  be  turned  from  it  in  disgust. 
That  reform  and  reconstruction  is  almost  the  first  condition 
of  direct  grain  trade  between  the  West  and  Europe,  and 
capital  and  tact  are  only  needed  to  bring  them  both  about. 

Thp  capacity  for  handling  and  storing  grain  is  as  follows ; 
and,  it  may  be  observed,  that  storage  in  Illinois  is  protected 


OUTLETS  TO  THE  OCEAN. 


187 


by  a  rigorous  penal  law,  and  that  deficiencies  and  irregiilari- 
ties  are  guarded  against  in  every  way : 


CaptieHy  for  Handling  and  Storing  Grain. 

iutAtdic  wabuousm. 

OAPAORT  torn 

Rouai. 
bnah. 

OATAORT    W 

■aOUTI    AMD 

no  per  bat. 
buh. 

OAPAOITTW 
Blir  pr.  BAT. 

buh. 

Illinois  Central  R.  B.  (Storgis,  Bnclc- 

Ingham  &  Co. ) 

Do.  (New  Warenonse) 

R.  I.  R.  R.  (Flint,  Wheeler  &  Co). . 

Chicago  and  Galena  U.  R.  R 

Gibbs,  Griffin  &  Co 

Munger  &  Armotir 

700,000 
700,000 
700,000 
500,000 
500,000 
300,000 
200,000 
160,000 
100,000 
100,000 
60,000 
75,000 

65,000 
65.000 
55,000 
50,000 
60,000 

0,000 
30,000 

5,000 
25,000 

0,000 
20,000 
30,000 

225,000 

225,000 

200,000 

125,000 

150,000 

100,000 

75,000 

50,000 

50,000 

40,000 

40,000 

60,000 

Munn,  Gill  &  Co 

Flint.  Wheeler  &  Co 

Burlingame 

S.  A.  Ford  &  Co 

James  Peck  &  Co 

Walker.  Bronson  &  Co 

Totals.. 

4,095,000 

495,000 

1,340,000 

The  rates  of  storage,  <&c.,  will  be  found  under  the  head  of 
Chicago  Charges  in  the  Appendix. 

The  spring  trade  usually  opens  with  a  large  winter  accu- 
mulation of  wheat  on  hand,  and  by  one  party  or  another,  not 
necessarily  new  buyers,  the  wheat  is  sent  forward.  Shortly 
after  the  opening  of  the  navigation  and  while  the  wheat 
movement  is  in  progress,  corn  begins  to  arrive  by  the  canal 
and  the  railroads.  Until  the  middle  or  latter  part  of  June, 
very  little  corn  goes  forward,  in  consequence  of  the  liability 
to  heat,  on  shipboard,  and  July  and  August  are  the  great 
com  shipping  months;  by  which  time  corn  has  been  well 
dried,  by  the  summer  heat.  During  the  corn  shipping  season 
the  new  crop  of  wheat  is  being  harvested,  and  when  that  is 
jBinished,  the  com  has  pretty  much  all  gone  forward,  and 
farmers  then  apply  themselves  to  sending  in  wheat.  That 
new  wheat  is  in  prime  shipping  order,  and  September  and 
October,  and  the  early  part  of  November,  are  occupied  with 
wheat  shipments  to  the  exclusion  of  almost  every  other  kind 
of  grain.  Corn  is  harvested  after  the  farmer  has  sent  for- 
ward as  much  wheat  as  he  feels  disposed  to  do,  and  the  first 


188 


THE  NORTH-WEBT,  AND  ITS 


corn  movements  are  made  in  the  midsummer  of  the  following 
season., 

Gonsiderable  dissatisfaction  has  been  expressed  with  the 
cleaning  of  Chicago  wheat,  but  means  have  now  been  taken 
to  remedy  that  defect,  and  hereafter  there  can  be  no  excuse 
for  any  kind  of  grain  going  forward  in  a  dirty  stat^ 

The  following  is  the  official  statement  of  the  leading  arti- 
cles of  export  from  Chicago  for  the  year  ending  81st  Decem- 
ber, 1857,  and  ^as  made  recentl/  by  the  Collector  of  Cus- 
toms to  the  Patent  Office : 

* 

STATEMENT  of  ihc  Quantity  and  Eatimated  Value  of  Artitde$  of  Merchandim 
of  Domestic  Growth  or  Manufacture,  Exported  from  Chicago,  Ultnoi$,  during  the 
Year  ending  December  3l8t,  1857.    Compiled  by  Jacob  Fbt,  Collector. 


AKtIOUH. 


Aihea,  pearl,  tons. . . , 
Apples,  dried,  lbs.  . . . 

Apples,  banels 

Aold,  mtrio.  lbs 

Agrio'l  implem'ts.  No. 
BMf,  salt,  dmnIs  .... 

Batter,lbs 

Baoon,  lbs 

Baeon,  assorted,  euks 
Barley,  biiaheU .... 

Beans,  bushels 

Bran,  lbs 

Beer,  gallons 

Oars,  railroad,  No.  . 
Com,  shelled,  bushels 
Olorer  Seed,  to'^s  . . . 

Cattle,  No 

Older,  barrels 

Oom  Ileal,  bush.  . . . 
Com  Broom,  bales . . 

Oandles,lbs 

Cement,  barrels 

Oheeae,lbs 

■mptf  barrels,  No.  . 

■nglnes.  No 

Flour,  bols 

Fish,  piokled,  lbs.... 

Glue, lbs 

HiKh  wines,  bbis 

mdes,No 

Horses.  No 

Hogs,  UTe,  No 

Hams,  lbs 

Hair,  lbs... 

Hops,  lbs 

Hay,  tons 

Hoops,  No 

HUDDS,  Mts 

Iron  Oastlngg,  tons. . 


11 


100 
167,600 


4O)J>V0 


4,704 
1,680 
8,116 


2.010 
6,809 
27,388 
10060,000 


6767,762 
'l,7a8 


111,420 
8,806 


7 

182,614 

980,000 

180,600 

482 

84,6n 


3682,000 
10,000 


6,642 


848 


1.826 


997 


620,481 
746 


i.« 

218,096 


111,960 


2,416 

28,168 

2,091 

100,6^"$ 


91,172 
8,197 


186,170 


12,024 


420,900 

IM 

222,766 


26,290 


160 
46 


8 

160 

898,276 


9,998 


1,600 


7,004 
600 


22,940 

649,436 

18,884 

8 

61,907 


780 
8,479 


1,482 


1,029 


481,446 


88 


97,620 


1,224 


110 
128,000 


119 


2,632 

1290 

600 

697 

17,600 


18,264 


162,276 


112!. 


i 

I 


848 

116,462 

9,628 

167,600 

2160 

68978 

162  602 

11848276 

4,704 

24  684 

8116 

1600 

20,000 

116 

7,982,894 

748 

64,280 

688 

111,420 

8808 

1224 

24  809 

767,681 

110904 

10 

870,786 

1,108,000 

180,680 

6496 

274,099 

8,678 

100,646 

8,684,682 

12,290 

600 

6,5" 

17600 

1,029 

112 


984,800  00 

9,816  96 

88,680  60 

94,600  00 

162,000  00 

698,708  00 

82,620  40 

1,184,827  60 

94,080  00 

24,604  00 

8,116  00 

16  00 

106,226  00 

81,200  00 

4,760,486  00 

180,876  00 

1,626,900  00 

2,916  00 

111,420  00 

88,080  00 

146  88 

74.427  00 

84.428  41 
221,808  00 

6,000  00 

1,868,676  00 

88,640  00 

18,098  00 

77,040  00 

1,287,496  00 

428,760  00 

1,006,460  00 

466,002  16 

2,468  00 

60  00 

87,484  00 

176  00 

2,068  00 

2,240  00 


\ 


OUTLETS  TO  THE  OCEAN. 


It9 


STATaii>MT— ( Omttnued. ) 


ummm. 


limt.bblf 

Unl,»M 

LMd,lbi 

Murbto 

Okti.biuh 

OU,  iud.g&lli 

Pork,  bbii , . . 

PotatoM.  bnth. .  ^ . 

Pnmpi,  No 

Pork,  in  balk,  toni . 

Bjo,  Doth 

ShMp,  No 

BteTM.No 

8teNh,lbi 

8pokM.No 

So*p, Ibi 

Tallow,  Ibi 

Timothy  Bood,  bnah. 

Tlmb«r,ft«t 

VlnefMr,8i'.i 

Whlaky,  g»ll. 

WhMt,  both 

Wool,  ibi 

Wagoiu,No 


1678,960 
6086,000 

m 

460,062 


14,002 
SJIBO 


66,000 
19,600 


488,980 
96,900 


19,880 
8421,780 

1788,0U0 


48,000 
1,700,000 


106,006 


27,117 
12,689 


2,609 


19,872 


127,080 

809,662 

6,847,000 


9,760 
16,000 


76,800 

16,890 

9,462 

12164 


160 
167 

40,000 


UO 


12J98 

988,860 

1,764 


1,877 


108 

1,890 

1,400 

ll 

614 

8,688 


1667,000 
468,868 
9jm 


8,800 


441 


29,900 


P,801 
8,778 


10,000 


480 
248,868 


72 


2000 
9,000 
12,888,1408,492^10100,686 


U,18e 

1,008,910 

7,980,000 

6M 

708,096 

17,280 

47^ 

97.860 

8,088 

2^ 

10,160 

19,689 

1,068,000 

480 
784,900 


88,881 

n,9e8 

406,062 


8,408,860 
2;i96 


22^72  00 

189,92010 

72>0  00 

98^00 

210.919  40 
10,808  00 

670,490  00 

8,868  CO 

18,416  00 

409.920  00 
10,160  00 
29,298  60 
82,060  00 
87,780  04 

188  88 

88  40 

78,480  90 

89,402  00 

607  46 

7,968  00 

148,616  00 

10,109,686  00 

l,608,6n  80 

219,600  00 


28,716,849  29 


Statement  of  the  Principal  Receipts  at  St.  Louis  from  the  Illinois 
Railroad*  and  Illinois  River. 


leee.* 

TLOUB. 
bbli. 

WUBAT. 
boih. 

OOBW. 
biuh. 

BOOB. 
Beta. 

Terre  Haute.  Alton  and  St.  Louis 

Railroad 

BelleTille  and  Illinois  Town  B.  B. 
Ohio  and  Mississippi  Baiiroad. . . . 
Illinois  Biver 

2,200 
57,200 
20,400 
91,400 

10,000 

38,000 

47,900 

1,188,800 

28,200 

79,200 
452,600 

38,700 
1,000 
1,400 

Totals 

171,100 

1,284,700 

540,000 

36,100 

*  B«edptf  at  St.  liools  ftom  Ulnoia  and  other  States,  were  not  fUly  partieolarlied  in  the 
St.  Loulii  reports  of  laat  Tear ;  a  great  oTenlcht,  for  which  Uiere  is  no  •xraie;  and  m  an 
forced,  therefon,  to  use  the  itatistioi  of  1866  instead  of  1867. 


140 


THE  NOBTH-WEBT,  AND  ITS 


Statement  of  the  Prineipoi Bxportt  from  St.  Louit  to  New  Orharu, 
by  the  MUaiteippi  River. 


i8se.* 

VLOCB. 

bbli. 

WHBAT. 
buh. 

OOBW. 
baah. 

LABD. 

bbla. 

PORK. 

bbU. 

HBMP. 

b«lM. 

March 

April 

yy 

Jane 

Jaly . . . .  1 . . . 

Angiut 

September. . . 

October 

Norember... 

Totals.... 

86,100 
91,100 
75,000 
98,500 
70,900 

lOOyOOO 
84,700 
83,300 

142,000 

13,100 
9,800 

38,900 
115,600 
103,100 
369,600 

67,900 
110,300 
503,100 

94,700 

101,100 

154,700 

180,100 

69.600 

57,700 

138,400 

37,300 

45,600 

3,600 

7,300 

8,600 

300 

300 

600 

1,500 

300 

400 

32,500 

37,000 

19,600 

5,100 

7,200 

600 

400 

^800 

l;5oo 

1,700 
1,500 
3,100 
3,400 
8,100 
1,000 
500 
500 
1,000 

845,600 

1,331,400 

859,200 

17,800 

97,100 

18,800 

*  Th«  um«  neglect  in  putleolulslng  the  ezporta  of  1867  wu  nude  by  the  St.  Loale  Boud 
of  Tnuie. 


Statement  of  Freighti  from  St.  Louis  to  New  Orleans. 

1867. 


PLOCR. 
bbla. 

OBAIM. 
biuh. 

POBK. 

bbla. 

HBMP. 

balei. 

12^  cents  in  July 

to 
60  cents  in  Feb. 

6^  cents  in  July 

to 
20  cents  in  Feb. 

30  cents  in  Jane 

to 
75  cents  in  Feb. 

18  cents  in  Nov. 

to 
40  cents  in  Feb. 

I  > 

I  I 

MONTREAL  REPORT  OF  ROUTES  TO  THE  SEABOARD. 

JTnf.— From  Chicago  to  New  York,  by  the  way  of  the  Lake,  to  BaiTalo,  the 
Erie  Canal,  and  the  Hudson  Rivor  to  New  York. 

By  sail       By  ateun 
▼eaaela.        reaaela. 

From  Chicago  to  Buffalo,  914  miles  Lake  navigation,  at  2 

and  3j^  mills $1.83  $3.30 

Flrom  Banalo  to  West  Troy,  353  miles  Canal  navigation,  at 

8  mills    8.82  8.83 

From  West  Troy  to  New  York,  151  miles  River  navigation, 

at  3  and  5  mills 46  .76 

Transferring  cargo  at  Buffalo 80  .30 

UlSmiles $5.30  6.98 


.76 
.20 


OUTLBIB  TO  THE  OOBAN.  141 

iSboand .— From  Chicago  to  N«w  ToA,  bj  the  waj  of  the  Lakee  and  W^Uaod 

Caaal  to  Oswego,  and  thence  by  the  Oswego  and  Erie  Canali  and  the  Hndaoa 

Biver  to  New  York. 

Dy  nU.     Br  itMSt 

Fram  Chicago  to  Otwego,  1057  mllee  Lake  narigation,  S  and 

Si  mill!  tl.ll      .   13.70 

Additional  expenie  on  the  Weliand  Canal,  S8  milet,  S  milli.     .08  .06 

From  Oswego  to  Weet  Troy,  203  oiilw  Canal  narigatlon,  8 

mills 1.89  1.6S 

From  West  Troy  to  New  York,  151  miles  Birer  narigation,  8 

andSmills ,, 45  .78 

Transferring  cargo  at  Oswego SO  .SO 

UlOmilee 94.46         •6.88 

Thrd.—Ttom  Chicago  to  New  York  by  the  way  of  the  Lakes,  the  Welland, 

St.  Lawrence,  Canghnawaga  and  Champlain  Canals,  and  the  Hudson  River  to 

New  York. 

BysUl.     9yMmm. 

From  Chicago  to  New  York,  1 632  miles,  at  2  and  8|  milL? . . .  83 .  S8         96 . 7 1 
Additional  expenses  on  the  Welland,  St.  Lawrence,  Cangh- 
nawaga and  Champlain  Canals,  1 67  miles,  3  mills 50  .50 

1632nules    $8.78         |8.ai 

FourtA.— From  Chicago  to  Montreal  by  way  of  the  Lakes  and  Birer  St 

Lawrence,  and  the  Welland  and  St.  Lawrence  Canals. 

By  sail.     By  staam. 

From  Chicago  to  Montreal,  1278  miles,  at  2  and  3^  mills. ..  .82.86         $4.47 
Additional  expense  in  the  St  Lawrence  and  Welland  Canals, 

75  miles,  at  3  mills 22  .SS 

1278  miles $2.78         $4.69 

The  comparison  of  the  routes  by  BaUroad,  from  the  termination  of  the  voy- 
ages of  the  large  vessels  to  certain  points,  is  as  follows : — 
First. — From  Chicago  to  Buffalo  by  Lake  vessels,  and  thence  to  New  York 

by  Railroad. 

By  sail.  By  iteHD. 

From  Chicago  to  Buffalo,  914  miles,  as  before $1 .83  f3.20 

From  Buffalo  to  New  York ,  444  miles  Railroad,  atl^cts....  6. 66  6.66 

Transferring  cargo  at  Buffalo 20  .20 

ISSSmiles $8.69        $10.06 

iSjcom/.— -From  Chicago  to  Oswego  by  Lake  vessels,  and  thenoe  to  New  York 
by  Bailroad. 

By  sail.     By  ■toam. 

From  Chicago  to  Oswego,  1057  miles,  as  before $8.19         $3.78 

From  Oswego  to  New  York,  327  miles  by  Bailroad,  at  l^ts.  4.90  4.90 

Transferring  cargo  at  Oswego 20  .20 

1384  miles $7.29         $8.88 


142  THE  N0BTH-WE8T,  AND  US 

mnL—Vtom  Chicago  to  Whitehall  by  Lake  Teaaela,  and  thence  to  Now 

Toric  hj  Railroad. 

ByMU.  ByitNBi. 

9tom  Chicago  to  l^itehall,  1415  miles,  at  2  and  8^  mills. .  .$2.83  •4.95 
Additional  expense  of  Welland,  St.  Lawrence  and  Cangfan»- 

waga  Canals,  101  miles,  at  8  milk 30  .30 

From  Whitehall  to  Newt  ToJrk,  223  miles  by  Baiboad,  at 

1^  cents 3. 35  3.35 

TiOBtferring  cargo  at  Whitehall... 20  .20 

1038  miles $6.88  $8.80 

JburtA.— From  Chicago  to  Whitehall  by  Lake  vessels,  and  thence  to  Boston 

by  Bailrood. 

ByitU.  Bysttnn. 
From  Chicago  to  Whitehall,  1415  miles,  and  traosfening 

careo  as  in  No.  8 $3.33  $5.45 

From  Whitehall  to  Boston,  191  miles  by  Baiboad,  l^cts  . . .  2.87  2.87 

1606  miles $6.20  $8.3$ 

Fyih.— 'From  Chicago  to  Burlington,  by  Lake  yessels,  and  thence  to  Boston 

by  Bailrood. 

By  Mil.  Br  itom. 

From  Chicago  to  Burlington,  1351  miles,  at  2  and  3J^ mills.  .^.70  $4.73 
Additional  expenses  of  Welland',  St.  Lawrence,  and  Canghna. 

wosa  Canals,  101  miles,  at  3  mills SO  .30 

From  Burlington  to  Boston,  258  miles,  at  1^  cents 3.87  3.87 

Transferring  cargo  at  Burlington .20  .20 

1609miles $7.07  $9.10 

Sixtk. — ^From  Chicago  to  Montreal  by  Lake  vessels,  and  thence  to  Boston  by 

Railroad. 

By  sail.  By  attain. 

From  Chicago  to  Montreal,  1278  miles,  as  before $2. 78  $4.69 

From  Montreal  to  Boston,  by  Railroad,  341  miles,  at  1^  cts.. .  5. 12  5. 12 

Transferring  cargo  at  Montreal 20  .20 

1619  miles $8. 10  $10.01 

Seventh. — ^From  Chicago  to  Montreal  by  Lake  vessels,  and  thence  to  Portland 

by  Railroad. 

By  aail.  By  ateam. 

From  Chicago  to  Montreal,  as  before,  1278  miles $2.78  $4.69 

From  Montreal  to  Portland,  by  Railroad,  292  miles,  at  1^  cts.  4.38  4.38 

Transferring  cargo  at  Montreal .20  .20 

*     1570  mUes $7.36  $9.26 

~-McAlpine'a  Official  Statement. 

Nora.— Theae  catoulationa  are  baaed  on  dUtanoe,  and  on  equal  rate  of  tranapoitation 
ehaiip. 


OUTLBIB  TO  THE  OCEAN. 


148 


1 


TBAN8P0BTATI0N  FBOM  THE  WEST  TO  THE  EAST. 


The  fonr  great  competing  railway  lines  for  the  canrring  trade  of  the  Weatem 
Sutea  are,  it  ia  well  known,  the  New  York  Central,  New  Toift  and  £rie|  Balti- 
more and  Ohio,  and  FenuylTania  Central,  and,  within  a  jMr  or  two,  the 
Grand  Trank  Bailway  of  Canada  has  also  entered  the  field. 

Before  we  dve  the  figutas  showing  the  cost  of  transporting  br  these  seraral ' 
lines,  we  weiul  remark  that  thfow  u  a  well  ndderstood  law  of  natnre  which 
compels  water  to  aetk  its  lowest  outlet,  and  diere  is  a  no  less  well  defined 
law  of  commerce  which  forces  trade  to  its  cheapest  outlet.  So  long  as  trade 
finds  its  way  by  present  rontea  as  cheap,  or  cheaper,  than  any  other,  it  wQl 
continne  in  its  present  channels.  The  rontes  of  trade,  when  more  than  one 
line  is  available,  is  simply  a  question  of  cost,  and  couTenience  and  intereat 

Sivem  in  the  dedsion.  In  the  calculations  of  actual  cost  of  transporting  on 
e  lake  and  on  the  ndl  which  follow,  it  will  be  proper  to  state,  that  by  lake 
is  made  up  from  the  business  of  twelve  propellers  on  the  li^es,  during  two 
seasons  of  navigation,  which  shows  it  to  have  been  34  miUs  per  ton  per  nme  on 
long  routes,  and  6  mills  on  short :  and  the  cost  on  tne  raO  is  that  of  the  New 
York  Central  Bailroadfor  three  years,  as  appears  by  their  annual  reports. 

TOH  OTTIiOTIB  OB  WHBAT. 

From  Chicago  to  New  York  by  steamer  on  the  lakes  to  Buffalo,  l/)00 
miles,  at  3^  mills  per  ton  per  mile $8.50 

Insurance  on  wheat  and  flour  at  $80  per  ton  and  ^  per  cent  to  Buffalo',        .  15 

Bailroad  from  Buffalo  to  Albany,  300  miles,  at  I*  cents  per  ton  per 
mile 4.S0 

Hudson  River,  150  miles,  at  5  mills  per  ton  per  mile '. 75 

Total...., $8.90 

Add  tolls  as  proposed  by  bill  now  pending  in  Assembly,  300  miles,  at  3 
mills  per  ton  per  mile 9Q 

Making  the  cost,  with  the  tolls  added  from  Chicago  to  New 
York  by  lake  and  sdl $9.80 

Chicago  to  Grand  Haven,  Michigan,  by  steam,  say  160  miles,  and  in- 
sunmce  $1.00 

Bailroad  from  Grand  Haven  to  Portland,  Maine,  1,026  miles,  at  1^ 
cents  per  ton  per  mile 15.39 

Cost  from  Chicago  to  Portland  via  Grand  Trank  Bailroad,  per  ton. . . .  $16.39 

Chicago  to  Ogdensbnig,  1,300  miles,  steam,  3^  mills $4.50 

Insurance  on  wheat  or  lour  at  $30  per  ton,  at  1  per  cent 80 

Toll,  Welland  Canal,  per  ton,  and  through  ij; 40 

Extra  freieht,  Welland  Canal,  at  3^  mills  per  ton  per  mile,  say 10 

Bailroad  from  Ogdensburg  to  Boston,  400  miles,  1^  cents 6.00 

Cost  from  Chicago  to  Boston  via  Ogdensburg,  per  ton $11 .30 

Toll  on  the  Ogdensburg  Railroad,  1  Ifi  miles,  at  3  mills 35 

Making  a  total,  with  tolls  added,  of $11 .65 

Chicago  to  Montreal,  by  steam,  say  1,450  miles,  at  3^  mills  per  ton. . . .    $5.08 

Welland  Canal  toll,  40c.,  extra  freight  through  at  10c 50 

Montreal  to  Portland,  292  miles,  at  1^  cents  per  ton 4.86 

Insurance  on  wheat  or  flour  at  $30  per  ton,  1  per  cent «. .        .30 

Cost  from  Chicago  to  Portland,  by  steamer  to  Montreal,  and  rail 
through $10.86 


144 


THE  NOBTH-tWEBT,  AND  ITS 


Chicago  to  Philadelphia  by  rail,  viA  Fort  Wayne  and  Crestline,  843  i 

miles,  at  U  cents,  u .> 918. 85 

Toll,  Philadelphia  to  Pittobui^h,  S63  miles,  at  S  mills 1.06 

Philadelphia  to  New  York,  thronj^  Delaware  and  Baritan  Canal,  say 
!S0  miles.... 2.00 

Cost,  Chicago  to  ^ewtToilcTiaPhiladelphiifc 415.41      ^ 

When  the  Ohio  Biver  is  ap,  the  ronte  from  Cincinnati  via  Baltimore  and 
Ohio  Bailroad  and  Ohio  riyer,  and  propeller  from  Baltimore  to  New  York,  can 
compete  with  ttie  ronte  br  rail  through  New  York,  Lake  Erie  and  rail  from 
Cleveland — the  New  York  ronte  paying  toll  of  90  cents  per  ton  on  floor  or 
wheat;  but  the  New  York  route  by  rail  cannot  compete  and  pay  4  mills  per 
1000  pounds  per  m^ljB,  as  at  present  charged  on  merchandise,  when  the  Onio 
river  IS  np  from  Wheeling.  .  i 

Crestline,  Ohio,  the  great  dividing  point  for  New;,^*)''^  '"'^  Philadelphia, 

say  76  miles  to  Cleveland,  at  I^  cents, is. ...% 91.14 

Cleveland  to  Buffalo  by  steam,  180  miles,  at  6  mills  per  ton  per  mile .. .  1 .  08 
Buffalo  to  Albany,  by  railroad,  300  miles,  at  1^  cents  per  ton  per  mile . .  4 .  60 
Hudson  river,  ISO  miles,  at  5  mills  per  ton  per  mile. 75 

Total $7.47 

Add  toll  on  flour,  300  miles,  at  3  mills  per  ton 90 

Cost,  Crestline  to  Newlfork,  via  Buffalo 98.37 

Crestline  to  Pittsbuigh,  187  miles,  Pittsburgh  to  Philadelphia,  363 

mUes,  making  640  miles,  at  1^  cents  per  ton  per  mile 98.10 

Toll,  Pittsburgh  to  Philadelphia,  at  3  mills  per  ton  per  mile 1 .  06 

Philadelphia  to  New  York  via  Delaware  and  Baritan  Canal,  say  120 

miles,  at  not  less  than 2.00 

Cost,  Crestbne  to  New  York  via  Philadelphia 91K16 

TOM  MSEOHAimiSB  AT   MILLS  TOLL. 

New  York  to  Philadelphia  via  Delaware  and  Baritan  Canal,  not  less 

than ; 92.00 

Philadelphia  to  Crestline,  Ohio,  540  miles,  at  1^  cents  per  ton  per  mile,  8. 10 

ToU,  Philadelphia  to  Pittsbugh,  at  3  mills  per  ton  per  mile 1 .  06 

Cost,  New  York  to  Crestline  via  Philadelphia 911 .  16 

New  York  to  Albany — barge  towed  by  steam  9  .75 

Bailroad  to  Buffalo,  300  miles,  at  1^  cents  per  ton  per  mile 4 .  50 

State  toll,  300  miles,  at  4  mills  per  ton  per  mile 1.20 

Buffalo  to  Cleveland,  steam,  1 80  miles,  at  6  mills 1 .  08 

Bailroad,  Cleveland  to  Crestline,  76  miles,  at  1^  cents  per  ton  per  mile.  1 .  14 

Cost,  New  York  to  Cresline,  Ohio,  via  Buffalo 99 .  87 

These  tables,  it  must  be  borne  ^n  mind,  show  the  actual  cost  of  transporta- 
tion of  all  these  several  lines  or  routes,  and  not  what  rates  they  may  see  fit  to 
charge. 

In  ascertaining  which  is  the  cheapest  route,  we  have  to  be  governed  by  the 
actual  cost.  These  tables,  and  they  cannot  be  controverted,  show  most  conclu- 
sively that  the  railroads  in  this  State  can  pay  the  toll  proposed  and  still  have 
a  very  large  margin  in  favor  of  their  lines,  as  compared  with  the  route  either 
north  or  south  or  this  State. 

It  must  be  admitted  by  every  intellig|ent  legislator  who  examines  this  ques- 
tion with  In  impartial  and  unbiased  mind,  seeking  the  truth  to  aid  him  in  dis- 
chfu-ginfg  his  duty  to  his  constituents  and  to  the  State  at  large,  that  the  future 
prosperity  of  the  canal  and  the  best  interests  of  the  whole  State  demand 
imperatively  the  reimposition  of  tolls  upon  rs  'Oads.  — iVew  Yorik  Tnbune. 


$  .75 
4.50 
1.20 
1.08 
l.U 


146 


APPENDIX. 


Wheat  Table. 


I,  d. 

V  6 
38   U 
»   1) 

»u] 

8010 

n  ^ 


86 
86 


8810f 

87  4 

88  6} 

89  6^ 

40  81 

41  ll 
«llll 
4310 
48   8i 

44  r 

46  61 

40   8} 

47  M 

48  0 
4810i 
49 
60 
61 


6410 


38 


1810 
19   Si 


d. 
0 


4101 
6   0 


6  101 

6  0 

6  li 

6  8 

6  4i 

6  6 

6  7i 

6  0 

eioi 

7  0 
7  li 
7  8 
7  4J 

7  6 

7  7* 
T  9 
710i 

8  0 


s.  d. 
8  6j 
8  7 
8  9 
810i 
4   0 


Vi 

4  r 

II 

4  101 


1 

? 

5; 


6 
6 
6 
6 
6 

6      . 
6   9 
6  10} 
6   0 
6 
6 
6 

6  6 
6  6; 
6 

6  9 
6  101 

6  111 

7  1 


8 


t   e 

0.86 

0.91 
0.06 
1.01 
1.06 
1.11 
1.16 
1.21 
1.36 
1.81 
1.86 
1.41 
1.46 
1.61 
1.66 
1.61 
1.66 


Hon.— Wheat  is  qootod,  In  thtse  dUbtent  nuurkati,  kt  Umm  weights;  Mtd  «  quotation  of 
whaa*  In  London,  at  27f.  6<l.  per  480  Ibi.,  wonld  bo  •qnlvalent  to  86  eents  par  60  Ibi. 
rractfamally,  the  dollan  and  oenta  are  not  czaot,  bnt  ara  ch>w  enough  ft>r  everydaj  op«r»- 
tlona ;  anA  mlea  tor  ezaetnaaa,  and  methoda  of  calonlation,  vlU  be  feond  Airtbar  on. 


V 


APPENDIX. 


147 


Wheat  Table. 


a.81 
a.86 

a.4i 

a.46 

Oott  of  WBEATper  Quarter  qf4mb$.,  free  <m  board  at  New  York. 

5!* 

m 

liaBAicai  Ai 

6iwr 

7ptr 

8lM> 

9par 

lOpw 

6ptr 

7p« 

8pra 

9per 

10p«r 

e«nt 

eant. 

oint. 

etnt. 

eeut 

emit. 

out. 

emt 

OWdt. 

ent^ 

•  < 

«.  d. 

«.  d. 

1.  d. 

(.  d. 

(.  d. 

•  c 

«.  d. 

$.  d. 

••  ar 

I.  d. 

t.  d. 

.90 

8  6 

8110 

8111 

n  8 

81   0 

J:S 

4110 

41   6 

41   1 

40   9 

40  a 

.01 

8a  a 

81   7 

81   4 

42  a 

41   9 

41   6 

41    0 

40   7 

M 

a  10 

88   6 

83   8 

81   1 

81    8 

1.19 

43   7 

4a   1 

41   9 

41   4 

40U 

.88 

88  a 

82  11 

82   7 

88  8 

88   0 

i.ao 

48  0 

ttlO 

48  3 

41   9 

41   8 

.94 

M    8 

88   8 

sail 

82   7 

82   4 

i.ai 

48   4 

tt   6 

48   1 

41   8 

.9S 

mn 

88   7 

88   8 

sail 

82   8 

i.aa 

48   8 

48  a 

4310 

42   6 

4a  0 

.96 

84   8 

8811 

88   8 

88  4 

88   0 

1.38 

44   0 

48   7 

48  a 

43   0 

a  4 

.97 

84   7 

84   8 

84   0 

88   8 

88   4 

1.84 

44   4 

4811 

48   6 

48   1 

43  8 

.98 

VI 

84   7 

84   4 

84   0 

88   8 

1.25 

44   8 

44   8 
44   7 

4810 

43   6 

48   1 

.99 

86   0 

84   8 

84   4 

84   1 

1.36 

46   1 

44   8 

4810 

48  6 

1.00 

85  8 

86   4 

86   0 

84  8 

84   4 

1.37 

46   6 

46   0 

44   7 

44   8 

48  9 

1.01 

86   0 

86   8 

86   9 

86   0 

84  ,8 

1.38 

46   9 

46   4 

4411 

44   6 

44   1 

i.oa 

86   6 

86   1 

86   6 

86   1 

1.89 

46   1 

46   8 

46   8 

44  10 

44   6 

1.08 

86   0 

86   6 

86   1 

86   9 

86   6 

1.80 

46   6 

46   0 

46   7 

46  a 

44   0 

1.04 

87   1 

86   9 

«S 

86   1 

86   9 

1.81 

40   9 

46   4 

4611 

46   6 

46   1 

1.06 

87   6 

87   1 

86   6 

86   1 

1.82 

47  a 

46   9 

46   8 

46  10 

46   6 

.1.06 

87   9 

87   6 

87   1 

86   9 

86   6 

1.88 

47    6 

47   1 

46   7 

46   8 

46   9 

.1.07 

88   1 

87   9 

87   6 

87   1 

86   9 

1.84 

47  10 

47   6 

46  11 

46   6 

46   1 

1.06 

88   6 

88  a 

S^ 

87   6 

87   1 

1.85 

48   8 

47   9 

47   4 

4611 

46   6 

1.09 

88  10 

88   6 

87   9 

87   6 

1.86 

48   7 

48   1 

47   8 

47   8 

4610 

1.10 

89  a 

8810 

88   6 

88   1 

87   9 

1.87 

48  11 

48   6 

48   0 

47   7 

47  a 

1.11 

89    7 

89  a 

8810 

88   6 

88   2 

1.88 

49   8 

4810 

48   4 

4711 

47   6 

i.ia 

89  11 

89   6 

80   1 

8810. 

88   6 

1.89 

40   7 

49  a 

48   8 

48   8 

47   9 

1.18 

40   6 

89  10 

89   6 

89  a 

88    9 

1.40 

4011 

40   6 

49   0 

43    7 

48   1 

1.14 

4010 

40   5 

8911 

80   6 

80  a 

a.4i 

60   4 

4911 

49  6 

49   0 

48   6 

vs 

41  a 

40   9 

40   6 
40   9 

40   0 

89    6 

1.42 

60   8 

60  a 

49  0 

40   4 

4810 

41   6 

41    1 

40   6    80  101 

1.48 

61   • 

60   7 

60   1 

40   7 

48  a 

ATerace  bnkonge  tad  ehugM  IwlaMl 


14S 


APPENDIX. 


lip 

ll 


iiiili 


Corn  Tabks. 


Oti-ptr 

Par 
Qiwrtw. 
IsOlbi. 

Pot  BunI. 

Pot  Ton. 

Cto.  per 

Pot 

QoOTtor. 
480  ItM. 

PmBrnml. 

POTlkm. 

66Ibi. 

280  Ibt. 

3340  Iba. 

6611m. 

380  Ibi. 

3340  Ibi. 

1 

«.  d. 

£  1.  d. 

£ 

*.  d. 

$.  d. 

£  t. 

d. 

£ 

<.  d. 

.66 

34   0 

0   14   0 
5   14   8 

5 

13  0 

87   6 

1    1 

10 

8 

16   0 

24   6 

6 

14   4 

1.07 

88   0 

1   3 

3 

8 

17   4 

.68 

36   0 

0   14   7 

5 

16   8 

88    6 

1   S 

5 

8 

19   8 

35   6 

0   14  10 

5 

19   0 

1.10 

89   0 

1   3 

9 

9 

3   0 

.71 

36   0 

0   15   3 

6 

1   4 

89    6 

1    8 

0 

9 

4   4 

36   6 

0   15   6 

6 

8   7 

1.18 

40   0 

1    8 

4 

9 

6   8 

.74 

27   0 

0   15   9 

6 

6   0 

40   6 

1    8 

.7 

9 

9   0 

• 

27   6 

0   16   0 

6 

8   4 

1.16 

41   0 

1   8 

11 

9 

11   4 

.77 

38   0 

0,  16   4 

O'  16    7 

6 

10   8 

41    6 

1   # 

3 

9 

U   8 

38   6 

6 

18   0 

1.19 

43   0 

1   4 

6 

9 

16   0 

.80 

39   0 

0   16  11 

6 

16   4 

43   6 

1   4 

9 

9 

18   4 

39   6 

0   17   3 

17   8 

1.22 

48   0 

1   6 

1 

10 

0   8 

.88 

80   0 

0   17   6 

0   0 

48   6 

1   6 

4 

10 

8   0 

80   6 

0   17   9 

2  4 

1.26 

44   0 

1    6 

8 

10 

5   4 

.86 

81   0 

0   18   1 

4   8 

44   6 

1    6 

11 

10 

7   8 

81   6 

0   18   4 

7   0 

1.28 

46   0 

1   6 

8 

10 

10   0 

.89 

83   0 

0   18   8 

9   4 

SS 

1   6 

6 

10 

IS   4 

83   6 

0   18  11 

11   8 

1.81 

1    6 

y^ 

10 

14   8 

.93 

88   0 

0   19   8 

14   0 

46   6 

1    7 

■^1 

10 

17   0 

88   6 

0   10   6 

16   4 

1.84 

47    0 

1    7 

6 

10 

19   4 

.96 

84   0 

0   19  10 

18   8 

47   6 

1    7 

8 

11 

1   8 

84   6 

1    .0   1 

8 

1   0 

1.87 

48    0 

1    8 

0 

11 

4   0 

.98 

86   0 

10   6 

8 

8   4 

48   6 

1  8 

8 

11 

6   4 

B   6 
16   0 

10   8 

1 

6   8 

1.40 

49   0 

1   8 

7 

11 

8    8 

1.01 

110 

8   0 

49   6 

1    8 

10 

11 

11   0 

86   6 

118 

8 

10   4 

1.48 

60   0 

1    9 

3 

11 

18   4 

1.04 

87   0 

117 

8 

12   8 

••/•• 

Avenge  brokenge  uid  durgM  included. 


Cost  of  INDIAN  CORN  per  Qr.  of 

480  Wa.,  free  on  board  at  New  York. 

^^ 

B<T0HAN«1  AT 

Ill 

■ZCEAHOl  AT 

n^s 

6pw 

7  per 

8  per 

OpOT 

10  per 

-«!S 

6per 

7  per 

8pOT 

9pOT 

10  POT 

^it 

cent. 

rani. 

cent. 

cent. 

cent. 

^1.^ 

cent. 

cent. 

cent. 

cent. 

cent 

0$nts. 

».  d. 

».d. 

1.  d. 

«.  d. 

«.  d. 

Genu. 

«.  d. 

a.  d. 

«.  d. 

s.  d. 

*.  d. 

.60 

19    8 

19    1 

18  11 

18   9 

18    7 

.76 

29   1 

28  10 

28    7 

28   4 

28   1 

.61 

19    8 

19    6 

19   4 

19    1 

1841 

.77 

29   6 

29    8 

29   0 

28   8 

28   6 

.62 

20    0 

19  10 

19   8 

19    6 

19   4 

.78 

29  10 

29   7 

29   4 

29   1 

28  10 

.68 

20    6 

20    8 

20    1 

19  10 

19   8 

79 

80   8 

80   0 

29   9 

29    6 

29   2 

.54 

20  10 

20    7 

20    6 

30    8 

20   0 

.80 

80   8 

80   4 

80    1 

29  10 

29    7 

.56 

21    2 

21    0 

20  10 

20    7 

20   5 

.81 

81    0 

80  9 

80   6 

80    2 

29  11 

.66 

21    6 

21    4 

21   2 

20  11 

20   9 

.82 

81    6 

81    1 

80  10 

80   7 

80   4 

.67 

21  11 

21    8 

21    7 

21    4 

21   1 

.88 

81   9 

81   6 

81   8 

81   0 

SO   8 

.68 

22    8 

22    1 

2111 

21    8 

21   6 

.84 

82   2 

8110 

81    7 

81   4 

81    0 

.69 

22    8 

22    6 

22    4 

22    1 

2110 

.85 

82   6 

82   2 

81  11 

81   8 

81   6 

.60 

28    1 

2210 

22    8 

22    6 

22    8 

.86 

82  11 

«2   7 

82   8 

82   0 

81    9 

.61 

28   6 

28   8 

28    1 

22    9 

22    7 

.87 

88   8 

8211 

82    8 

82   4 

82   1 

.63 

38  10 

28   7 

28    5 

23    8 

22  11 

.88 

88   8 

88   4 

88   0 

82   8 

82   5 

.68 

24   2 

•34   0 

28  10 

28    6 

28   4 

.89 

84    1 

88   9 

88   6 

88   1 

83   9 

.64 

24    7 

24   4 

24    2 

28  11 

28   8 

.90 

84   6 

84    1 

88   9 

83   5 

88   1 

.66 

24  11 

24   9 

24    7 

24    8 

24    1 

.91 

84  10 

84    6 

84   2 

33   9 

88   6 

.66 

25    4 

25   1 

24  11 

24   8 

24    6 

.92 

86   2 

84  10 

84   6 

84   1 

88   9 

.67 

26    9 

26   6 

26    4 

26    0 

24    9 

.98 

86    7 

86   2 

84  11 

84   6 

84   2 

.68 

26    1 

26  10 

26    8 

25    6 

25    2 

.94 

85  11 

86   7 

86   4 

84  11 

84   6 

.60 

26    5 

26   2 

26    0 

25    9 

25    6 

.95 

86   4 

86   0 

85    8 

86   8 

84  11 

.70 

26  10 

28   7 

26    4 

26    1 

26  10 

.96 

86    8 

86   4 

86   0 

85   8 

86   4 

.71 

27   8 

26  11 

26    9 

26    6 

26    8 

.97 

87   1 

86   8 

86   4 

86   0 

86   8 

.78 

27    7 

27   4 

27    1 

26  10 

26    7 

.98 

87   5 

87   1 

86    8 

36   5 

86   0 

.78 

28   0 

27   9 

27    6 

27    2 

27   0 

.99 

87  10 

87   6 

87    1 

86  10 

86   6 

.74 

28    4 

28   1 

27  10 

27    7 

?!7   4 

1.00 

88    8 

8711 

87    7 

87   8 

86  10 

.76 

28    9 

28   6 

28   8 

2711 

27   8 

Non. — Com  U  quoted,  In  Che  Bnglbh  and  Iriah  markets,  either  per  quarter,  per  barrel,  or 
praton;  and,  by  the  above  table,  the  telattve  value,  and  the  value  per  60  Ib8.,  li  easily 
•acertalned.  Fractionally,  the  dollars  imd  cents  are  not  exact,  but  are  (close  enough  for 
evenrday  operations;  and  rules  ft>r  eztctness,  and  methods  of  calculation,  will  be  found 
Airtnn  on. 


'1 

19 

4 

1 

8 

4 

0 

6 

4 

8 

8 

11 

0 

18 

4 

APP&rDO. 


The  Currencies. 


149 


bt'o. 

HALirAZ  OUB'hOT. 

TIDaiUI.. 

bt'o. 

HALIFAX  OUR'MOT. 

FBDSBAL. 

«. 

£  1.  d.f. 

•  e.  m. 

£ 

£   $.    i.  /. 

0     t.  m. 

14  ta  0 

1 

0     13  0 

0  24  a 

3 

3  IS  0  0 

a 

0     3  6  0 

0  48  4 

4 

6    0  0  0 

19  36  0 

3 

0     3  9  0 

0  72  6 

5 

6    5  0  0 

34  aoo 

19  04  0 

4 

0    5  0  0 

0  96  8 

6 

7  10  0  0 

S 

0    6  3  0 

1  ai  0 

7 

8  15  0  0 

33  88  0 

6 

0    7  6  0 

1  45  2 

8 

10    0  0  0 

38  7a  0 

7 

0    8  9  0 

1  69  4 

9 

11     5  0  0 

43  66  0 

8 

0  10  0  0 

1  93  6 

10 

12  10  0  0 

48  40  0 

9 

0  11  3  0 

2  17  8 

11 

13  15  0  0 

53  84  0 

10 

0  12  6  0 

2  42  0 

12 

15    0  0  0 

58  08  0 

11 

0  13  9  0 

2  66  a 

13 

16    5  0  0 

62  92  0 

la 

0  15  0  0 

2  90  4 

14 

17  10  0  0 

67  76  0 

IS 

0  16  3  0 

3  14  6 

15 

18  15  0  0 

72  60  0 

14 

0  17  16  0 

3  38  8 

16 

20    0  0  0 

77  44  0 

15 

0  18  9  0 

3  63  0 

17 

21     5  0  0 

82  28  0 

16 

10  0  0 

8  87  2 

18 

aa  10  0  0 

87  12  0 

17 

113  0 

4  11  4 

19 

23  15  0  0 

91  96  0 

18 

1     a  60 

i^  35  6 

20 

25     0  0  0 

96  80  0 

19 

13  9  0 

4  59  8 

21 

26    5  00 

101  64  0 

£ 

22 

27  10  0  0 

106  48  0 

1 

15  00 

4  84  0 

23 

,      28  15  0  0 

111  33  0 

a 

2  10  0  0 

9  68  0 

•    s 


1 10  per 
etnt. 


a.  1 

i. 

28 

1 

28 

n 

28  10 

aB 

2 

20 

7 

29  11 

80 

4 

80 

8 

81 

0 

CHICAGO  CHARGES. 


81  6 
81  9 


83 
82 


1 
6 

82  9 
88  1 
88  5 
88  9 
84  2 
84  6 
84  11 
86  4 
86  8 
86  0 
86  5 
86  10 


Batis  of  Gommitsion  adopted  hy  the  Chicago  Board  of  Trade. 

COMHISBIOM  ON  8ALB  OF  OBAIN,  BTC.  , 

Wheat ...2c  per  bushel. 

Corn,' Oats  and  all  other  Grains Ic  per       " 

On  sales  of  other  prbdncts,  or  property  of  any  kind,  over 

$100... 2j  per  cent 

On  sales  of  other  products,  or  property  of  any  kind,  under 

$100 5    percent. 

The  above  without  advance  or  acceptance ;  that  to  be  subject  to  agreement. 

Without  agreement— rFor  advancing 2^  per  cent. 

For  accepting 2|  per  cent. 

For  guaranteeing  sales 2^  per  cent.   • 

Oniwithdrawal  of  consignment,  2^  per  cent,  on  amount  of  expenses  incurrrcd, 
and  1^  per  cent  on  invoice. 
On  Charters,  2^  per  cent,  on  freight  list. 
For  effecting  Marine  Insurance,  the  return  premium  and  scrip. 

COHHIBBIOIT  OK  PURCHABEB  OF  OBAIK,    BTO. 

For  purchasing  Wheat  from  Canal  Boats  or  Warehouse Ic  per  bushel. 

"  "  "       "    Railroads,  in  small  lots 2c  per        " 

For  purchasing  Com  by  cargo Ic  per       " 


160 


APPOIDIX. 


!. 


For  panhMiog  0«ti  by  oargo ^  pw  biuhfll. 

"  *'        Cora,  Oati,  or  other  Grain,  ia  leas  qnantitieB 

than  cargo lo  per       " 

"  "    "  all  other  propartr  over  •100 Si  per  cent 

"  "  "  "     under tlOO S    percent 

The  Above  with  finds  in  |iaad. 

For  negotiating  bflb  (wi&oat  agreement) U  pw  cent 

AU  expenses  actnallT  inquired  to  be  added.  The  risk  of  loss  bTfiie  (unless 
written  ofler  to  insure},  and  of  robbery,  theft,  and  other  unaToidable  occur- 
rences, if  the  usual  care  be  taken  to  secure  the  property,  is  in  all  cases  to  be 
borne  Dy  the  proprietors  of  the  goods. 

Interest  to  be  dhaiged  as  per  agreement.  Without  agreement,  10  per  cent,  to 
be  the  rate.  t 


Jtatet  of  Doehage  and  Storage. 

OVSTOIIABT    0HAR0X8. 


,    Abtiolbs. 

Dockage. 

Storage  80  days 
included. 

Merchandise,  City,  per  100  lbs 

do.         Conntey,  (cartage  extra). 
Flour,  per  bbl ; 

5c 
10 

? 

ft 

H 

76 

75 

75 

5 

•  • 

lOo 

10 

IS 

10 

10 

Fork  and  Beef,  per  bbl. 

Other  Provisions,  oer  100  lbs 

Salt,  per  bbl. . . . ; 

Grindstones,  ner  ton 

CoDDcr  and  Iron,  ner  ton 

Ore  and  Plaster,      do 

Wool,  per  100  lbs 

Carriages,  Wa^ns,  Pianos,  Heavy  Merchandise,  &c.,  to  be  chaiged  corres- 
pondingly or  speoal  rates. 

Grain  from  boats  or  cars  per  bushel 

Diayage,  from  warehouse  to  depots,  per  ton 50  to  75q 


Jiatet  of  Chicago  Grain  Storage.    Seaton  1858. 

Bailroad  Grain  taken  from  cars  and  deposited  in  bins,  and  snbBeqaently  put 
free  on  board  vessels,  at  an  aggregate  charge  of  2  cents  a  bushel.  That  chatve 
1^0  covers  warehouse  rent  from  ue  opening  of  the  season  tQl  the  dose,  shomd 
grain  remain  so  long  in  store. 

Canal  boat  grain  taken  from  canal  boats  and  deposited  in  bins,  and  subse- 
quently put  free  on  board  vessels,  at  an  aggregate  charge  of  1  cent  a  bushel. 
That  charffB  also  covers  warehouse  rent  from  the  opening  of  the  season  till  the 
close,  shomd  grain  remain  so  long  in  store. 

Grain  received  from  railroadj  or  canal  boats  from  1st  November  and  held  till 
16th  April,  and  subsequently  put  free  on  board  vessels  at  an  aggregate  chaise 
of  four  cents  a  bushel.  Tiiat  chaige  also  covers  rent  from  the  one  date  to  the 
other.  ^ 

Non.— Defloienej  In  store  rweipts  ia  a  penal  offence,  punJahable  by  a  term  of  years  Im- 
ptUonment  In  tbe  State  penitentiary.  , 


V 


APFIRDIZ. 


161 


Baiet  of  Iiuurance,  determined  by  the  Board  of  Vnderwriten,  on 

Grain  etored  in  elevating  vfarehotues  in  Chicago. 

Eome,  EcUejr  ft  Co.,   per  annnm, ^i  pw  ontlL 


niinolf  Central  Elerator, 
Manger  &  Armonr, 
Gibbe,  GrlfBn  ft  Co., 
Mann  ft  Scott, 
Flint,  Wheeler  ft  Co.. 
Bock  bland  Boilroad, 
Wftlker,  Bronaon  ft  Co., 
Chicago,  May  S6tb,  1858. 


.8 
.8 
.4 
.4 
.8 
.6 


II   .i 

II 

II 

II 

u 

ft 


MONTREAL  CHABGES. 


ii.  per  bnahel. 


Insurance,  ^  per  cent.  On  the  cmoant 
insared. 


Tabifv  ot  -BnoKBiuoaa  adopted  bt  thb  ComroiL  or  thi  Boabd  or 

Tbadb. 

Floar,  Ud.  per  barrel. 

India  Heal,  Id.  per  barrel 

Oatmeal,  Id.  per  barrel. 

Indiui  Com, 

Barley, 

Peas, 

Oats, 

Whcutt,  id.  per  bosheL 

JjjJ   \  8d.  per  barrel. 

Lard,  8d.  per  keg ;  barrels  in  propor- 
tion. 

Ashes,  Hi.  per  cwt. 

Freight,  1000  barrels  and  over,  |  per 
cent ;  under  1000  barrels,  1  per 
eent 


STOCKS. 

Bank  and   J  *'-?„Sf«r!TS1iI 

•Minine  shares,  6d.  per  share. 
All  other  Stocks,  Bonds,  Debentures, 
&c.,  ^  per  cent,  on  the  face  thereof. 


Bates  or  Storage,  Etc. 


On  Wheat  and  dOur  Grain. 

First  month,  indading  labor  of  re- 
ceiving and  dolivering,  1  jpl.  per  bushel ; 
eadt  succeeding  montfi,  from  1st  Maj, 
to  1st  December,  ^. ;  do.,  do.,  from 
1st  December  to  the  Ist  Maj,  ^. 

Cribbling,  each  time,  M. ;  screening 
or  fanning,  each  time,  ^.  per  bushel ; 
turning  to  prerent  heating,  each  time, 
6d.  por  100  Dushels ;  use  of  bags  each 
time,  Ss.  9d.  per  1000  bushels. 

Fhw  and  Meal. 
First  month,  including  all  labor  of 


receiving  and  deliTering,  8d.per  barrel ; 
each  succeeding  mont^  Id.  per  barrel. 

Pork,  Beef,  FitJi,  Lard,  TaUow,  and 
Butter  in  barrdi. 

First  month,  induding  all  labor  of 
receiving  and  delivering,  4d.  per  bar- 
rel ;  each  succeeding  month  2d.  per 
barrel ;  other  packages  in  proportion. 

Butter  and  Lard  in  Kega  and  Firkins. 

First  month,  including  all  labor  of 
receiving,  weighing  and  delivering, 
3d. ;  each  succeeding  month,  Id. 


162 


APPENDIX. 


NEW  TORK  CHABQE8. 


Batbi  or  Coxmuioir,  rtoommmdM  far  genercU  adoption,  and  aUowtd  bjf  tK$ 
New  York  Cumber  y  Commerce,  what  no  Agreement  $ubtut$  to  the  contrary. 

On  Foraan  Bvmna».—Oti'  the  aale  of  merchand,i8e,  5  'per  cent. — Sale  or 
purchase  of  stocks,  1  per  cent. — Specie,  j^per  cent. — ^Forchue  and  shipment  of 
merchandise,  with  fond  in  hand,  <m  the  aggregate  amount  of  auU  and  cnargei,  S^ 
per  cent.— Drawing  or  indorsing  bills,  in  aU  cases,  3^  per  cent. — Vessels,  setting 
or  purchasing,  2|^  per  cent. — ^Procoring  flreigfat.  5  per  cent. — CoUectinff  freight 
on  general  averwe,  8^  per  cent. — Outfits  or  disbursements,  with  fhnds  In  hand, 
9^  per  cent. — ^Emoting  marine  insurance,  in  all  cases,  when  the  premium  does 
not  exceed  10  per  cent,  m  the  amount  insured,  ^  per  cent.  When  the  premium 
exceeds  10  per  cent  on  the  amount  of  premium,  5  per  cent.-^Collecting  diyidends 
on  stock,  ^  per  cent — Collecting  delayed  or  litigated  accounts,  5  per  cent. — 
Adjusting  and  collecting  insurance  losses,  2i  per  cent. — Receivineand  paying 
monevs,  from  which  no  other  commission  is  derived,  1  per  cent.— HKemittances 
in  bilu,  in  all  cases,  ^  per  cent. — ^Landing  and  reshipping  goods  from  vessels  in 
distress,  on  the  value,  i\  per  cent. — ^Receiving  and  rorwuding  goods  entered  at 
the  custom-house,  on  the  value,  1  per  cent.— end  2^  per  cent,  on  responsibilities 
incurred. 

On  Inland  Business. — On  the  sale  of  merchandise,  2^  per  cent. — Purchase 
and  shipment  of  merchandise,  or  accepting  for  purchase,  without  funds  or 
property  in  hand,  2i  per  cent-^Sale  or  purchase  of  stocks,  1  per  cent. — Sale  or 
purchase  of  specie,  j^  per  cent. — Sale  of  bills  of  exchange  with  indorsement,  ^ 
per  cent. — Sale  of  bank  notes  or  drafts  not  current,  f  per  cent — Selling  or 
mdorsing  bills  of  exchange,  2^  per  cent — Selling  or  purchasing  vessels,  2^  per 
cent. — Chartering  to  proceed  to  other  ports  to  load,  2^  per  cent.— Procuring  or 
collecting  freight,  2^  per  cent. — Outfits  or  disbursements,  2^  per  cent. — Coltect- 
ing  general  average,  2|  per  cent. — Effecting  marine  insurances,  in  all  cases 
when  thepremium  does  not  exceed  10  per  cent,  on  the  amount  insured,  ^  per 
cent.  When  the  premium  exceeds  10  per  cent,  on  the  amount  of  premium,  5  per 
cent. — ^Adjusting  and  collecting  insurance  losses,  2^  per  cent. — Collecting  divi- 
dends on  stocks,  ^  per  cent. — Collecting  bills,  and  paying  over  the  amount,  or 
receiving  and  paying  moneys  from  which  no  other  commission  is  derived,  1  per 
cent. — ^Receiving  and  forwarding  goods,  on  the  value,  J  per  cent. — The  same, 
when  entered  for  duty  or  debenture.  1  per  cent. — Remittances  in  bills,  in  all 
cases,  ^  per  cent. 

The  above  commissions  to  be  exclusive  of  the  guarantee  of  debts  for  sales 
on  credit,  storage,  brokerage,  and  every  other  charge  actually  incurred.  The 
risk  of  loss  by  nre,  unless  insurance  be  ordered,  and  of  robbery,  theft,  and  other 
unavoidable  occurrences,  if  the  usual  care  be  taken  to  secure  the  property,  is, 
in  all  cases,  to  be  borne  by  the  proprietor  of  the  goods.  When  bills  are  remitted 
for  collection,  and  are  returned  under  protest  for  non-acceptance  or  non-payment, 
the  same  commission  to  be  chained  as  though  they  were  duly  honored.  On 
consignments  of  merchandise  withdrawn  or  reshipped,  full  commission  to  b« 
charged  to  the  extent  of  advances  or  responsibilities  incurred,  and  half  commis- 
sion on  the  residue  of  the  value. 


V 


▲PPKKDIZ. 


168 


5  per 

_  divi- 

lunt,  or 

1  per 

same, 

,  in  all 


lUfH  or  Bioaiu,  thmgMiU  ptr  moii^Lm  ««i«UM«4  iy  ik$  tkm  Tar* 

P«pptr,  in  bagi.  pw  awt ffl 

nMntoMaeMborlMgi,pwowt 4 

KiM,  to  MareM,  ptr  «••■• ]f 

lB4^dttlo,pav|«Mo 8 

Ban,  in  Mm,  pw  <wt ^....    f 

■«Ediia,Mala«a,laaa*i J...!.    8 

ditto,  ia  boma i 

la  oUtar  paatagaa,  pw  ewt. i 

Kaai.    8aa  U^owa. 

Sal^patra,  In  mm,  par  ewt s 

In  aaiki,  ditto u 

Salt, In bi«iorbiU|t, par buahai! !!!!!!!    i* 

Shot,  In  eaaka,  par  ton 87 

Soap,li>bozaaor80to(l01ba t 

Btaal,  in  ban  or  bnndlaa,  par  ton 80 

in  bozaa  or  tnba,  ditto 40 

Sugar,  raw,  In  bags  or  boiaa,  pav  cwt 8 

ditto,  in  oaaka,  ditto u 

raflnad.  In  eaaka  or  paolufloa 8 

Tallow,  in  eaau  or  aaiona,  par  awt 8 

T«a,  boliaa.  In  whola  ahaala K 

in^ohaata ,.    g 

neon  or  blaek,  in  I  obaala 41 

In  boxaa,  in  proportion  to  |  ohaata. 

Tin,  block,  par  ton 80 

Inbouaofuiualaiaa.parboz U 

TObaeoa,  In  hbda.,  par  hhd 87} 

lnbaIaaoraaron«,parawt 4 

manafcet'd,  In  kaga  of  100  Iba.   8 
Wlnaa.    SaaLlqnora.  ' 
Wood!,  for  dyeing,  nndarcorar,  par  ton.  80 

ditto.  In  yard* , 35 

Whiting,  In  bhda.,  par  ton 87} 

On  artiolaa  on  wbieh  the  rata  ia  ilxad  by 
wal^t.  It  ia  undaratood  to  ba  on  tha  groaa 
weight;  and  on  liqnora,  <dl,  ate.,  on  imtah 
tha  rate  rafiws  to  gallona,  it  la  undaratood  to 
ba  on  tha  whola  eapaeii^  or  the  aaaka,  whether 
Aill  or  not.  The  proprietor  of  goods  to  ba  at 
the«     ■^-      ■■       • 


jUmoBda,lBfraiIaorpaekagaa,  parewt..    6 

Aloa,  ia  eaaka  or  baga.  par  ton 40 

Aahaa.  pot  aad  pearl,  dm I 

Bottiaa.  qoartVia'  mata,'  or.  or  hmp.  gr.  .    8 

Bark,  qoateltraa,  la  eaaka,  toa 00 

Bagging,  eottoa.looaa  or  In  balaa,  pe. ...    8 

Battar,uiArkinaof601ba.,parflr. I 

Brandy.    Sea  Uqaora. 

Oaadlaa, inboiaaof eOorOOlba., box...    t 

Olnaola*a,lnbozaaofA01ba.,box S 

Ooaoa,  In  baM,  par  ewt 3} 

In  eaaka,  ditto     ,..-.    8 

OoOba,  in  eaaka,  ditto     1} 

inbaga,  ditto     i 

Oopperaa,  in  eaaka,  par  ton 40 

Copper,  in  piga,  ditto 90 

In  aheeta  or  bolta,  ton 80 

bradera'  bottonu,  ton 76 

Cordage,  par  ton fiO 

Oaada,  In  mata  or  bozaa,  par  ewt. ;_;_.... .  10 
Cotton,  Amer'n,  in  aquara  balea,  800  lbs.  18} 

ditto.  In  round  balea,  ditto 16 

Waat  Indian,  in  jiroportlon  to  r'd 
Baat  Indian,  In  balea,  par  800  Iba    9 

Ohaese,  eaaka,  bozas,  or  loose,  ewt 8 

Duek,  heavy,  par  bolt 1} 

BaTana  or  Ruaala  ahaeting,  pleoa. .    0} 
Dry  Oooda,  In  bozaa  or  bnlea,  4<)  oublo  tt.  40 

nn,  plekled,  per  bbl 0 

dry,  In  eaaka  or  bozaa,  01.  > 4 

in  bulk,  par  ewt » 

nga,  in  flralls,  bozes,  or  drums,  ewt 2} 

naz,  perton 00 

nazaeed,  or  other  dry  artielea,  In  tieroea 

of  7  buahels  per  tteroe 10 

rionr,  or  other  dry  artiolaa,  in  bbla 4 

Barthenware,  inorateaof26to80fbet...  18 
In  hhda  of  40  to  60  feet. ...  80 

Orain,  in  bulk,  per  bnahel 1 

Oinger,  In  baga.  par  ewt 2 

81aaa,  window,  in  bozaa  of  60  feat 1} 

Oin.    BaaUqnon. 

Hemp,  per  ton 76 

Hides,  dried  or  salted,  per  hide 1} 

Hardware,  in  oaaka  of  «0  enblo  feet 40 

Indigo,  in  lerons  or  bozes,  per  cwt 4 

Iron,  in  bars  or  bolts,  per  ton 20 

Id  hoops,  sheets,  or  nallrods,  ton . .  SO 
UquoTS,  In  puncheons  of  120  galls.,  per  p.  80 

in  i  casks 6^ 

in  pipes  or  casks,  120  galls 80 

bottled,  in  casks  or  bozes,  doaen 

bottles 1} 

Leather,  per  side 1 

lArd.lnflrkinnofeOlbs 2 

Lead,  pig  or  sheet,  per  ton 20 

dry  or  gr.  In  oil,  ditto 20 

Molasses,  per  hhd.  of  110  gallons  (other 

casks  In  proportion) 80 

Nails,  In  casks,  per  cwt 2 

Oil,  in  hbds.  or  casks,  110  gallons 80 

in  chests  of  90  fl(,8ks,  per  chest 4 

bottled,  la  boxp«  or  baskets,  doi 1} 

Paints,  in  casks  or  kegs,  per  ton 40 

Pork,perbbl « 

Porter.    See  Liquors. 


away 


ezpanaa  of  putting  tham  In  atore,  atowlng 
ty,  and  turning  out  of  atore.    All  gooda 


teken  on  atorage  to  ba  anbJeot  to  one  menth'a 
storage;  If  taken  out  within  16  daya  ffter  tha 
ezpiiatlon  of  the  month,  to  pay  }  a  montti'a 
atorage;  If  after  16  daya,  a  whola  moath'a 
atorage. 


Dollt.     s  I.  i. 
Exptnu  of  loadtHg  a  Taaael  of 

900  tone,  in  the  port  of  New 

York,  with  the  uaual  eargo 

ezported  from  thenea 100     80  0  0  ' 

Ditto  of  dlsoharglng 80     18  0  0 

Forditeharging:  CnM. 

Coals,  per  chaldron 26       Oil 

For  loading : 

Tobaeco,  per  hhd 26       Oil 

Cotton,  per  bale 86       Oil 

Flour,  per  barrel 8}     0  01] 

Flazseed,  do 7       0  0  8} 

Ratti  of  Wharfage.— y»K\»  under  60  tons. 
GO  cents  per  day  t=is.9d.;  and  for  OTery  60 
tons  more,  12}  cents  additional  =>  Id. 

N.  B.— WhMft  are  all  prlTata  property. 


164 


APPIHDIX. 


Welland  and  St.  Lawrence  Canal  TbUs. 


ABfnCUB. 


•adT( 


l,nTM»Ml4 


MO.  t, 
cum  99.  u. 


Do.       ante  n 

«u«  R».  m. 

App]«,OBloMaa4T«frtibI« 

Bark 

Brtelu,  UnwMiAlkad 

OMtliigi(biolE«),ng  lion,  8aiq^  Iron,  ud  R.  R.  Inn, 

OHaantiOlajaDdWnMrlaM... 

Oool. 


WoUuA. 


V9  mi»ma. 
1  «.  4. 

0   0   1| 

0  0   6 
0  0  8 

0   10 


f».Ut 


£  $\  i. 

0  0   li 

0  0   0 

0  0  8 

0  10 


£  $.  d. 

0  0  0| 

0  0  8 
0   0  1| 

0   10 


Corn 

Gypinm 

HMip 

UmitnmM  and  JUawm , 
liufiW,StoiMUd81kto., 

te*,(«o|>pw) 

On,itxon) 


PototoM. 


Ball. 

TobMoo,  nnmonnftotaod 

oi^M  so.  IT. 


0  0  8 


0  0  8 


0   0   8 


,(M>»aadp«ul).' 

BMon,  BaMiff  oad  rak , 

BarioT,  Onto,  Bffo,  and  othwOnlil 

Bmt,  dldorandVuMgai 

Bian  and  Bklp  Staff 

OakU«,8hMpandHogt 

Oorn  Broom  and  PiMwd  Bhjr 

OoMonfraw) 

Flax,  Flax  and  otbtrSaadi 

Harnt,  Hooft  and  BoDM 

Mtali  of  Onto,  Barliy,  Oora,  ate 

MUla,  SplkM,  and  boa  not  olMwbaio  d«wribod . 

OUOako 

OU,  Lard  and  TUlow. 

Bagi,  Junk  and  Oaknm 

BtofM  and  othur  Oaatingt * 

WlBdovaiaa 

ouM  iro.  ▼. 
Agrieultofol  Prodoeto,  not  dMwhm  dMorlbod . 

BMf,  BMiwaz,  OhMaa  and  Hanu 

Biwnit  and  OraekuB 

Carts,  YehiolM  and  A(rioaltatal  Implanwnto . . . 

Ohareoal 

OoOm. 


0   18 


0   10 


0    3   8 


0   10 


0   16 


0   16 


Ooppeiaa, 

Floar 

Famltnro  and  Bwgage 

OlaM,  Stono  and  firtiienware . 

HidM  and  Skini,  (taw) 

HonM  ....: 

Mblamiand  Bogar 


8|^ti,  Uqoon  and  Wlnai . 

nnandStMl 

Toob  (Meehanko') 

WhMt 

Wool 


OIiAM  HO.  yi. 

Qooda  and  MeietauidlM  not  ennmerated 

oust  HO.  Tn. 

Barrels,  Mnpty,  each 

Barrel  Hoops,  per  M 

Boards  ana  Sawed  Iiomber,  reduced  to  one  inch  and 

onder,  in  Yeatels,  per  U 

Do.  do.  do.       in  Bafts,  per  M 

Hie  wood,  per  oord 


(T  6   0 


0   0   0 


1 
2 

6 
0 
74 


0   llOi 


APPINDIX. 


IM 


WaixAKD  jLXtt  St.  LAWsavoa  Oaitai.  Tou*-^QmHtmtd.) 


AftnOUB. 


ngi,  Ufcal  loag,  (If  mon,  In  pioporMon,) Mta^ 

ligi«Mh 

Do.  4a.  do.      lMTlpg,«Mli 

lhliMl«,p«rll .77.. 

l«RTM(plMoadhM4liigi),pwlllUo 

Do.  (w«tI]idtoMiAdo.),p«r4o.   

.Do.  (Bui«lMiddo.)i         pardo 

tlBlMr,  (Bqouo,  U  T«oMli),  p«r  M.  enble  ftol 

Do.     (   do.     laKafli),      do.         do.    ........ 

Do.     (Round  or  VtoMtd,  la  TmMIi),  andir  UxU 

latbM,  Mt  UdmI  fttt 

Do.     (do.    do.  la  Bkfli),  do.    do 

Othar  do.  knd  Woodoa  ArwslM,  por  toa  maaranaMal, 

MeaUefcottollon 

BpUt  Fofrti  and  Foaoo  Balli ,  la  YmmI,  put  M .  IbMal  ft. 

Do.  do.       la  Bafla,  Mr  M .  do 

noati,pttlOO,aMhIioek  pamd,  pw  100 

TraTWMO,  pw  100,        do.  do.     

Boat  KaiM,  mdt • 


Waited. 


«.  4. 


0  0  t 
•  610 

010  t 

81! 

15  0 
S  0  0 


1   0 
lift 


ItlawnsM. 


je  $T4. 


0  0  1 
0  0   1 

Ui 


4  «.  4. 


0   t 
0   8   8 

til 


0   « 

010 

0   8 

3   7 

^   8 

n 

0  0 
C  0 
0  0 


Non.— T«Mla  poTtai  Dm  Wallaad  Oaaal  tolto  ai*  eltar  OwMudi  thti  8t  LawnnM  :  •tal" ; 
•ad  TMMto  pa^ng  tM  M.  LawraiM  Oaaal  tolla  aia  fk«a  throagh  Iba  Wailaad  Oaaal. 

Wbora  tiia  llgiuaa  aio  oalMad,  la  tha  AxMgdBg  taUa,UMra(taaiattiaaaiaaaa<'idlaW  1 
hy  tha  flgnrca  Juat  abora. 


t: 


REGENT  0HANQS8. 

On  and  after  the  18th  of  Slay,  1858,  the  following  rednotioni  took  eSiBct  on 
the  tariff  of  Beveral  classes  of  merchandise  carried  on  the.  Welland  and  St. 
Lawrence  Canals. 

WELLAMD  CANAL. 

CLASS  KO.  IV. 

Upon  all  articles  in  this  class,  S5  cents  per  ton  weight,  instescl  of  SO  cents. 

CLASS  KO.  T. 

Upon  ail  articles  in  this  class,  80  cents  per  ton  weight,  instead  of  45  cents. 
ST.  LAWRENCE  CANAL. 

CLASS  HO.  III. 

Upon  all  articles  in  this  class,  16  cents  per  ton  weight,  ap  and  down,  in  lien 
of  30  cents. 

CLASS  HO.  IT. 

Upon  all  articles  In  this  class,  25  cents  per  t>::,  <Te!£^t,  np  and  down,  in  lien 
of  20  cents.  • 

CLASS  HO.  T. 

Upon  all  articles  in  this  class,  S'*^  cents  per  ton  weight,  ap,  in  lien  of  35  cents. 
"  «  ««         ai*    "  "  down,     "     30    " 

CLASS  HO.  vi.  ^ 

Upon  all  goods  not  enumerated,' 80  cents  per  ton  weight,  np,  instead  of  $1. 
"  "  "  80    "         "       "         down,    "    STJcts. 

Wheat,  Flonr  and  Com  continue  to  be  exempt  from  toll  throngh  the  St. 
Lawrence  and  Chambly  Canals,  afkar  having  passed  through  and  para  fall  tolls 
on  the  Welland  Canal ;  and 

Iron,  of  all  kinds,  and  Salt,  pass  as  nsnal  free  throngh  Welland  Canal,  after 
having  passed  throngh  and  paid  fall  tolls  on  the  St.  Lawrence  Canal. 


166 


APPENDIX. 


Extracts  from  the  Log  and  Manifest  of  the  .British  Schooner  "  Ma- 
deria  Pet,"  from  Liverpool  to  Chicago. 

NOH.— The  Toyage  to  Montreal  oceapied  thirty-five  dayi  ;  and  the  voyage  from  Montreal 
to  Chicago,  forty-five  dayi,  or  eighty  days  in  all.  Thetequs  of  the  charter  were  the  follow- 
ing :  Thirty  shillingi,  sterling,  (97,26)  per  ton,  of  2,210  lbs.,  or  of  40  cubic  Ibet,  from  Liver- 
pool to  Montreal— fh>m'  Montreal  to  GlUcago.  and  back  to  Montreal,  £4,  sterling,  dally, 
(919,86),  and  from  Montreal  to  Liverpool,  nine  snilllngs  sterling  per  quarter  for  wheat. 

April  24 — This  day  at  10  a.  u.  pilot  came  cm  board,  weighed,  made  sail,  and 

ftroceeded  down  the  Mersey.  At  4  f.  u.  light  airs  and  thick.  At  midnight 
bund  the  ship  drifting  too  close  to  shore — let  go  the  anchor  for  the  remainder  of 
the  tide.    Pumps  attended. 

April  25 — At  6  A.  m.  weighed,  made  sail,  and  proceeded  on  the  voyage — ship 
driftmg  back  with  the  flood.    At  6.30  p.  m.  stiff  breezes,  with  drizzling  rain. 

April  26 — Stiff  winds  and  cloudy.    This  day  .noon  commences  sea  log. 

April  27 — Gentle  breezes,  and  fine,  clear  weather. 

April  28 — Variable  winds  and  fair  weather.  Employed  in  getting  anchors 
on  board  and  stowed  unbent  the  cables  and  put  them  below. 

April  29 — Tacked  the  ship  to  the  westward — stormy  winds  and  cloudy. 

April  30 — May  2 — Stiff  breezes — all  sail  set  to  the  best  possible  advantage. 
Lat.  48:53.     Long.  30:07  W. 

May  3 — All  san  set.  At  8  p.  m.  winds  increased — carried  away  the  square 
sail  sheet.     Replaced  and  set  it  again.     Midnight  squally. 

May  4 — Short  cross  sea — sevel-al  ships  in  company. 

May  6 — ^Light  winds  with  a  long  swell  from  the  northward ;  carried  away 
main  boom,  top«nd  light,     lieplaced  again. 

May  3 — At  4  p.  h.  smart  breezes ;  took  in  light  sails  and  square  sail.  6  a.  m. 
increasing  winds ;  took  in  first  and  second  reef  of  mainsail — in  first  reef  fore 
sail  and  top  sail.  8  p.  m.  increasing  gale  ;  took  in  third  reef  of  the  main  sail; 
carried  away  one  of  the  chain  plates ;  got  it  secure  and  the  shroud  set  up  again ; 
squally,  hard  gales  and  heavy  rains. 

May  10 — Strong  gales  with  hard  squalls.  At  2  p.  H.  wind  shifted  suddenly 
in  the  W.  N.  W.  in  a  very  heavy  squall,  stowed  the  fore  sail ;  reefed  the  stand- 
ing jib  and  set  it;  ship  laboring  much ;  pumps  attended.  At  3  p.  h.  a  heavy- 
sea  broke  the  standing  jib  and  split  the  sail,  the  sea  taking  the  best  part  of  it 
away.  Squalls  with  strong  gales  and  hail  storms  ;  sun  not  observed.  Lat.  by 
Ace.  48:03  N.     Long.  38:09  W. 

May  10 — 1 1 — Winds  favorable  throughout — squally,  and  weather  disagreeable. 

May  16 — Passed  several  icebergs  ;  weather  thick,  with  drizzling  rains. 

May  20 — Light  winds  and  variable.  Employed  scraping  spars  and  varnish- 
ing them.    Lat.  by  observation  45:45  N. ;  Ix)ng.  53:37  W. 

May  24^ — Smart  breezes  and  clear  weather.  At  4  p.  h.  saw  the  land  bearing 
N.  W.  At  8  o'clock  saw  St.  Paul's  Island,  bearing  N.  by  E.— distance  about 
7  miles.  At  9  p.  m.  saw  St.  Paul's  revolving  light,  bearing  from  six  to  seven 
miles  N.  E^  E.  Baffling  winds  and  cloudy.  At  p.  m.  saw  Bird  Island,  bear- 
ing W.  S.  W.— distant  10  miles.  , 

May  25 — At  8  p.  H.  Bird  Island  S.  ^  E ;  distant  eight  miles.  Latitude  by 
observation  43:45  N. 

May  26 — Strong  baffling  winds  and  hazy  weather.  Hard  squalls.  Reefed 
the  topsail  and  mainsail. 

^v  27 — 30 — Variable  winds  ;  thunderstorms  ;  weather  heavy ;  Point  De 
Months  Light  seen  W.  N.  W. ;  distance  three  miles 

May  31 — Received  pilot  on  board — at  midnight  came  to  in  17  fathoms — 
Green  Island  bearing  South.  At  3  p.  bi.  weighed  and  worked  ship  to  wind- 
ward. At  noon  came  to  in  7  fathoms,  west  end  of  Hare  Island.  At  7  p.  m. 
weighed ;  light  winds  ;  midnight  off  the  Traverses.  Light  ship.  This  ends 
the  sea  log. 

June  I — At  noon  came  to  Quebec. 

June  3 — Cam^  to  at  Montreal — hauled  the  ship  along  the  side  wall. 


APPENDnC. 


fm 


June  4 — ^Received  orders  to  hanl  the  ship  into  the  canal  and  proceed  to  Chi- 
cago. 

June  5 — Agrodnd.    Not  able  to  haal  ship  throngh. 

Jane  6— At  6  p.  u.  sufficient  water  in  canal — hauled  thronsh  the  bridge. 

June  12 — Through  Canals ;  enter  channel  of  Thousand  ulands.  At  noon 
came  to  Kingston.    Took  on  pilot  to  go  to  Chicago.  ' 

June  14— Off  Presqne  Isle.    Light  winds  from  W.  N.  W.  to  W.  S.  W. 

June  15— Arrived  at  the  entrance  of  Wetland  Canal.' 

June  19~In  Canal.  Schr.  Hassilon,  of  Cleveland,  ran  foul  of  us,  a&d  car- 
ried awav  two  shrouds  of  the  larboard  main  rigging. 

June  20 — Getting  ship  ready  for  sea. 

June  22 — At  10  A.  M.  proceeded  on  vovage.    Winds  westerly. 

June  24 — Calm  and  clear  weather ;  tacked  ship  occasionallv. 

June  25 — Still  calm ;  heavy  fo^ ;  employed  m  painting  ship. 

June  26^At  6  f.  m.  Point  au  Pelee  Light,  distant  five  miles.    Light  winds. 

June  27— At  7  p.  h.  came  to  Detroit. 

June  28^Cook  deserted  the  ship  during  the  night,  and  no  intelligence  of  him 
at  10  A.  M.    Weighed,  made  sail — not  sufficient  wind  to  stem  the  current. 

June  29 — ^Light  winds  and  calms ;  strong  current  making  down. 

June  30 — Weighed,  made  all  possible  sail — entered  Lake  St.  Clair.  At  2 
p.  H.  came  to  in  11  feet  of  water,  owing  to  the  wind  getting  high  and  inclining 
to  the  northward.  At  3  p.  m.  weighed — strong  winds  from  the  westward.  At 
4  o'clock  got  into  St.  Clair  River-- all  possible  sail  set.  Wind  bearing  too  light 
to  stem  the  current. 

July  1 — Steam  tug  towed  ship.  Left  at  Newport  to  tow  other  ships  down 
over  the  flats. 

July  2 — Proceed  in  tow  with  tug  at  4.30  p.  h.  Left  in  Lake  Huron — set 
sails  in  first  reef — short  sea  winds  N.  by  W. 

July  3 — 6 — Weather  hazy,  with  repeated  calms. 

July  7 — Stiff  breezes  with  thick  haze ;  entered  Straits  of  Mackinac. 

July  8 — ^Light  winds ;  calms ;  thick  fogs.    At  midnight  off  Manitou  Islands. 

July  9 — 11— Light  breezes  from  E.  S.  E.    Weather  clear. 

July  12— Off  Milwaukee— occasional  winds  from  S.  E.  to  S.  S.  W.  At  6 
p.  H.  strong  winds,  with  thunder  and  lightning — made  and  shorten  sails. 

July  13 — Light  winds  from  S.  E.  to  S.  Latter  part,  stormy  breezes,  light 
rain,  thunder  and  lightning.    Plying  to  windward  to  the  best  advantage. 

July  14 — At  8  A.  H.  off  Chicago  liarbor.  Sailed  up  channel  and  came  to 
North  Pier. 

Copy  of  Manifest. — Manifest  of  cara;o  on  board  the  British  schooner  Ma- 
deira Pet,  of  Guernsey,  123  tons,  from  Liverpool  for  Chicago.    General  cargo. 

Wm.  Cbang,  Master. 


1,609  bars  iron, 
170  bdls    do 

19  casks  glass, 

1  case  samples, 

20  casks  hardwase, 
I  cato  hardware, 
8  cases  steel, 

107  crates  earthenware. 


5  casks  earthenware, 

5  tons  pig  iron, 
200  kegs  pak  t, 
150  do       do 
150  do        do 
140  do        do 

7  casks  paint, 

7    do      do 


158 


APPENDIX. 


LAKE  AND  NEW  TOBK  CANAL  rBEIGHTS,  GRAIN  STOBAOE 
AND  BLEYATINO  CAPACITT  OF  BUFFALO. 


'  3-'''' 


I- 


jntoH  omoAoo. 

WaSKLT  BAT>B  OT  VBBtOHTt  OF  tAlVrMfBia  TO  BVWVALO  AHD  08WB00, 

WITH  WaiAT  XSn  OOBV,  FOB  BBVUUL  BBJUlOirS.  \ 


March  29 

AprU 5 

do  la 

do  19 

do   26 

May S 

do   10 

do  17 

do   24 

do  31 

June 7 

do  14 

do  21 

do   28 

July 4 

do   11 

do   18 

do   25 

Angost 

do   9 

do 16 

do   23 

do 30 

September 6 

do 18 

do  20 

do  27 

October 4 

do  11 

do   18 

do   25 

NoTember I 

do   8 

do   15 

do  22 

do   ! 


1854. 


WhMt. 

9     S 


15 
14 
15 
14 
IS 
12 
11 
11 
14 

I  •  •  1 

11* 


20 
20 
21 

if 

17 
16 
17 
16 

I  •  ■  I 

18 


10 
10 
•9 

"i 

13 

13 

18 

20 


12 
12 


16 
18 


20 


25 


1855. 


WhMt 

9     9 


30 

ik' 

20 
19 
17 
15 


12* 

13 

15 

II 

11 


7 

9 

6 

6 

6 

10 

10 

8 

10 

13 

20 

20 

10 

20 

20 


2T 
27 


25 
23 
20 


18 
18 
19 
15 
15 
16 


10 

10 

14 

12i 

13 

13 

17 

18 

17 

20* 

20 

28 

25 

15 


1856. 


11 
12 


4 
4 
4 
6 
10 
13 
12 
11 
13j 
13| 
25 
20 
23 
20 
12 
15 


19 

17" 
14 
13 

11} 

10 


8 
8 
8 
7 

10 
16 


20 
18 
19 
21 


25 


20 


1857. 


WhMt. 

9 

9 


I 


4 
H 

t  m   • 

3 

8* 
S 

8* 
3 


3 


6* 
4 


7 
8 
6 
6 

?' 

6 


12 
11 
10 

"b 

12 

12* 

10 

9 

9 


1857. 


Com. 

9     9 


4 

3 
3 
3 
S< 

.2] 
2; 
8 

a 

2 
2 
3 

3 

2* 
2 

2* 

2 

4 

2 

3 

3 

3i 


7 
6 
6 
6 
5 
5 
6 
5 
5 

•  •  • 

6 
5 
7 
6 
5 

7 
5 

7 


8 
9 

8 


APPENDIX. 


tBOM  BVnAM. 

SATIS  OV  OAKAL  nUHOHtB,  VOB  TWO  YMAMM,  fSOlt  BVWALO  TO  JUJUXT 

AKD  TBOT. 


Mat  13 

do     ...87 

Jane    10 

do    84 

July  8 

do    « 32 

Angiut , 5 

do      19 

September ,  2 

do    16 

do    30 

October. 14 

do     38 

Novembw 11 

do     25 


1856. 


WluM' 


ISi 

•  •  •  • 

15 
16 


14 

t  «  •  • 

17J 

•  •  •  • 

'4 


Oon. 

•  •  ■  • 

15 

II 

18 

13^ 

13 

18 

« •  •  • 

1? 


1857. 


Odcb 

11 

IIJ 

10 

9 

8 

8 

? 

J&IO 

^10 

10 

13 


BXTTFALO  OAPAOITT  VOB  HANDLIMG  AHD  STOWIKO  OBAIR. 


ViMM. 

Stongt  oapadty. 

■lafstkm  p«r  honr. 

Bnfllido  Elevator 

boiluli. 
100,000 
370,000 
400,000    ■ 
175,000 
200,000 
150,000 
300,000 
80,000 
100,000 
200/)00, 
100,000 
150,000 

bodMlf. 
8,000 
3,500 
6,000 
3,000 
3,500 
8,500 
4,500 
8,000 
3,500 
4,000 
8,500 
8,000 

City            «        

Com  Dock  "        

Dart            " 

Evaiu          "        

Fish            "         

Hatch          "        

HilliBter      "        

Grain  Dock  "        

Main  St.       "        

Sterling       "        

Sevmoar  &  Wells 

Totals 

3,335,000 

38,000 

8 
9 

8 


160 


APPENDIX. 


EXCHANGE  FORMULAS. 


AMERICAN. 

The  American  Dollar  of 'Exchange  contains  386,704  grains  of  pare  silver, 
the  eqaivalent  of  which,  in  sterling,  is  54 pence,  or  $4.44  5-9  to  the  ponnd  sterling. 
The  pound  sterling,  howerer,  being  intrinsically  more  ralnable,  the  United 
States,  in  exchange  transactions  with  England,  have  to  pay  a  premiam  on  their 
own  rated  value.  The  rate  of  preminm  is  determined  by  the  international 
demand  and  supply  of  money  claims  at  any  given  time. 

If  exchange  were  ten  per  cent,  premium,  then  England  would  receive  $4.88 

to  the  dollar ;  «.  g. — 

(^4.44,  the  American  rated  value  of  the  pound. 
44,  the  10  per  cent,  added. 

0  $4.88 

If  exchange  were  8  per  cent,  premium,  then  England  would  receive  $4.79 
to  the  dollar;  e.g. — 

$4.44,     the  American  rated  value  of  the  pound. 
.35.6,  the  8  per  cent,  added. 

'  $4.79.5 
The  chain  rule  statings  of  exchange  transactions  are  the  following : 

I .    London  on  New  York  exchange,  11^  premium. 

$1,000     ^ 
$111^  100 

'40  £9 


$1,000  =  £201  158 10^ 

2.    New  York  on  London  exchange,  71  premium. 

£100 
£    0       .  40 

100  107^ 


£100 


$477.78 


Non.— X9  b  th»  eqntralent  of  $40,  aeoonUng  to  the  naage  of  exehaiuce  oaloulationi,  waA 
Moording  to  the  rating  of  the  value  of  the  American  allver  dollar  of  exchange. 

3.    London  on  New  York  exchange,  46}  pence. 

$1,000 
•  $    1  46} 

240  1 


4. 


$1,000  =  £193  15s 

New  York  on  London  exchange,  $4.80, 

£100 

£    1  4.80 

100  1 


£100 


=  $4.80 


CANADIAN. 


Canadian  exchange  transactions  are  on  the  same  assumed  valuation  of  the 
silver  dollar,  and  the  premium  is  expressed  in  the  same  way  as  in  exchange 
transactions  between  the  United  States  and  England. 


APPENDIX. 


161 


Canadians  hare  the  two  following  ways  of  bringing  sterling  into  CaiNtdiaa 
ciunrencj,  at  par,  or  9i  preminm  : 

1.  £100  sterling  into  cnrrency  at  the  costonii  par  of  9^  per  cent  preminm. 

£100 
Add  one-Sfth,  SO 

Add  one-twelfth,  1  13s  4<l 

£121  18«  4d 

2.  £100  sterling  into  cnrrency  at  the  cnstbms  par  of  9^  per  cent,  preminm. 

£100 
Add  9^,  9  10« 

Add  one-ninth,  12  IS$  4d 


3.    London  on  New  York,  17^  preminm. 


£121  13«  4d 


£  117.10 
10 


£1,000  cnrrency. 
100 
9 


£1,000  cnrrency.  £765  19».  2d.  sterling. 

4.    Montreal  on  London,  16  per  cent,  premium. 

£100  sterling, 
£    9  10 

100  115 


£100 


£127  15s  7d  cnrrency. 


11 


CONTENTS. 


CHAFTBRI'     ElBMBHTABT  HlBCOMOBPTIONB. 

$  1.    JilUsconiceptions  its  to  the  term  Wealth,  9. 
2.    Misconceptions  as  to  the  Influence  of  the  Price  of  Agri- 

cnltnral  Prodnce,  18. 
S.    Misconceptions  as  to  the  Balance  of  Trade,  27. 
4.    Misconceptions  as  to  the  Inflnenoe  of  Banking,  S3. 
-     5.    General  Application,  40.  ° 

CHAP.  II.    Genebal  Fbinoiflbb  of  Tbbobt  and  Pbacticb,  43. 

CHAP.  in.    Thbobt  and  Fbaotiob  or  thb  Tbadb  of  thb  United 
States  and  England,  64. 

CHAP.  IV.    Thbobt  and  Pbaotiob  of  thb  Tbadb  of  the  Unitbd 
States  and  Canada,  90. 

CHAP.  V.    The  Nobth-wbst  and  its  Outlets  to  the  Ocean,  117. 
The  Mississippi  Bonte. 
The  St.  Lawrence  Route. 
'     The  Erie  Canal  Boute. 


r^i: 


II  ^y 


•4'  1 


.   i'ii  ,1"! 


APPENDIX. 

1.  United  States  Exports  and  Imports  to  and  from  England  and  the  British 

Colonies,  88. 

2.  United  States  Exports  and  Imports  to  and  from  Canada,  110. 

3.  The  Reciprocity  Treaty,  111.  '  . 

4.  Canadian  Petition  for  Protection  to  Native  Industry,  114. 

5.  Official  Statement  of  Exports  from  Chicago,  138. 

6.  Receipts  at  St.  Louis  from  the  Illinois  River,  139. 

7.  Exports  from  St.  Louis  to  New  Orleans,  140. 

8.  Freights  from  St.  Louis  to  New  Orlonns,  140. 

9.  Montreal  Report  of  Routes  to  the  Seaboard,  140. 

10.  New  Yorlc  Report  of  Routes  to  the  Seaboard,  143. 

11.  Wheat  Tables,  146, 147.  s 

12.  Com  Tables,  148. 

13.  The  Currencies,  149. 

14.  Chicago  Charges,  149. 

15.  Montreal  Charges,  161. 

16.  New  Yorlc  Charges,  152. 

17.  Welland  and  St.  Lawrence  Canal  Tolls,  154. 

18.  Log  of  the  "  Madeira  Pet,"  156. 

19.  Freights  from  Chicago  to  Buffalo  and  New  York,  158. 

20.  Capacity  for  Handling  Grain  in  Buffalo,  159. 

21.  Exchange  Formulas,  160. 


Agri" 


SUITED 


fflTEO 


r,  117. 


Sritish 


GREAT  SODTHERN,  SORTHERN 

E^STERN^  ROUTE. 

ILLIieiS  illTIAI.  BAILiiit. 


FOR  ST.  liOVIS,  AliTOlf .  I^EATENWORTH  ClTTt  KANSAS 
City,  Terra  Hanto,  EraiMTUIe,  VinoemiM,  Peoris,  r^cft^nr,  Sprlngfldd,  Jacksonfllle, 
NaplM.  Cairo,  Hemphu,  Natchei,  'Mckiburgh,  New  Orleans,  and  all  points  on  the  lower 
MlMiuippl. 

Trains  viU  leave  the  Great  Central  Depot,  fbot  of  South  Water  and  Lake  Streets,  as 
follows: 

Peoila,  St.  Louis,  Cincinnati  and  Cairo  Bxpreis  at  9  A.  M.,  (Sundays  excepted.) 

Peoria,  St.  Louis  and  Cairo  Express  at  8  46  P.  H.,  (Sundays  excepted.) 

To  passengers  for  Memphis,  Yicksburg,  New  Orleans,  &o.,  the  route  via  Cairo  Is  the  only 
direct,  and  is  twenty>foar  hoori  in  advance  of  any  other,  oonneeting  at  Cairo  with  a  line  of 
first  class  steameit. 

CONNECTING 

AT  GILniAN— With  Peoria  and  OquawkaBailroad  for  Peoria,  Oaleskorg  and  towns 
upon  main  line  of  Illinois  Central  Railroad. 

AT  TOIiONO— inich  trains  of  the  Great  Western  Railroad,  east  ftnr  Danville  and 
Laftiyette;  west  for  Springfield,  Jacksonville  and  Naples,  and  towns  on  the  Illinois  River. 

AT  REATTOOIf-'With  trains  on  the  Terre  Haute,  Alton  and  St.  Louis  Railroad, 

fttlng  east  to  Terre  Haute,  Indianapolis,  Evansville  and  CrawfMdsvlile;  west  fi>r  Alton  and 
t.  Louis. 

AT  ODIN  AND  SANDOTAIi-Tflth  trains  on  the  Ohio  and  Mississippi  RaU- 
road ;  east  for  towns  upon  its  line ;  west  for  St.  Louis  and  Alton. 

AT  ST.  liOVlS— With  Pacific  Railroad,  and  steamws  fl>r  Kansas  uA  Nebraska, 
and  all  points  on  the  Missouri  River. 

AT  CAIRO— 'Vnth  steamers  for  Memphis,  Natchei,  New  Orleans,  and  all  points  on 
the  Mississippi  River. 

Tot  Galena,  Dunlelth,  Dubuque  and  St.  Paul,  trains  leave  flrom 

CENTRAL     DEPOT, 

Connecting  at  Dunlelth  with  a  dally  line  of  First  Class  passenger  steamers  for  Prairie  dn 
Chien,  LaCrosse,  Winona,  Hastings,  Hudson,  Prescott  and  St.  Paul.  Also  connecting  at 
Dubuque  with  the  Dubuque  and  Pacific  Railroad  for  Dyersville,  Independence,  Cedar 
Rapids,  Sioux  City,  fee. 

For  Bloomington,  LaSalle,  Dixon,  Amboy,  Polo,  Sec,  trains  leave  via  Chicago  and  Bur- 
lington RailroM,  from  Central  Depot,  making  direct  connections  at  Mendota  with  tndns  on 
main  line  of  lUinois  Central  for  all  of  the  above  points. 

THIlOTJGUa:    TXCXCSTS 

Can  be  obtained  at  the  office  of  the  Michigan  Central  Railroad,  opposite  Tremont  House, 
comer  Lake  and  Dearborn  Streets;  also  at  the  oflice  of  the  Pittsburg,  Fort  Wayne  and  Chi- 
cago Railroad,  opposite  Tremont  House,  and  at  the  office  ofthis  Company,  in  the  Great  Cen- 
tral Depot,  foot  South  Water  and  Lake  Streets,  and  all  Ridlroad  offices  in  the  East  and 
Oanados. 


W.  p.  JOHNSON, 
Genl.  Ticket  Agent. 

GENERAL   OFFICE  IN 


J.  C.  CLARKE, 

Genl.  Superintendent. 

DEPOT  BUILDING,  CHICAGO,  ILL. 

163 


THE  MICHIGM  SOUTHERN 

SAIUSOAD! 

RUNNING  TlteoUGH  THE  STATES  OF 

OHIO,  MICIIGM,  HDIMI  m  IlLIHOIS, 

Havlig  Two  Distinct  Eastern  Termini 

AT  THE  PORTS  OF  DETROIT  AND  TOLEDO. 


The  Michigan  Soathern  is  open  from  Detroit  to  Chicago,  a  distance  of  289 
miles,  and  by  means  of  ah  Air  Line  of  70  miles,  forms  the  shortest  connection 
between  Chicago  and  Toledo,  a  distance  of  232  miles. 

TXXIB     XtOulWZ) 

COHNEGTS  WITH  THE  BRAND  TRUNK  OF  CANADA 

AT    DKTROIT. 

Also  with  the  Great  Western  and  Bnffalo  and  Lake  Huron,  and 
carries  a  large  portion  of  the  traffic  and  travel  which  interchanges  at  Detroit 
witb  tiie  above  lines,  forming  an  Eastern  outlet  to  all  places  on  the  St.  Law- 
rence Birer,  including  Ni^ara  Falls,  Suspension  Bridge,  the  Thousand 
Islands)  Bapids  of  the  St.  Lawrence,  Quebec,  Montreal,  White  Mountains, 
the  Tubular  Bridge,  (nearly  two  miles  in  length)  Lak^  Champlain,  Falls  of 
Montmorenci,  Hudson  Biver,  the  Eastern  States  and  the  British  Proyinces. 

Westwardly,  the  Michigan  Southern  Bailroad  connects  at  Detroit  with  the 
Toledo  and  Detroit  Bailroad,  and  at  Toledo  with  the  Wabash  Valley  to  In- 
dianapolis,  Lonisville,  Cincinnati  and  all  the  principal  towns  on  the  Onio  and 
Mississippi  Bivers.  Also  at  Toledo  with  the  Cleveland  Boad  for  Central 
Ohio,  Pittsburgh,  Wheeling,  Philadelphia  and  Baltimore.  At  Laporte  with 
the  Pern,  Cincinnati  and  Chicago  Boad. 

At  the  Junction,  fifty  miles  east  of  Chicago,  we  connect  with  the  New 
Albany  and  Salem  Boad  to  New  Albany  and  Louisville.  At  Chicago  with  all 
the  lines  t^erminating  here  and  running  through 

ILLINOIS,  WISCONSIN,  IOWA,  MISSOURI, 

and  Minnesota;  also  with  the  Chic^o,  Alton,  St.  Louis  and  Illinois 
Central  to  New  Orleans ;  and  North- West  with  the  Chicago  and  Galena, 
Chicago,  St.  Paul  and  Fond  du  Lac,  &c.,  and  the  different  Lake  Steamers 
plying  to  the  Northern  shores  of  Lake  Michigan,  Milwaukee,  Green  Bay, 
and  the  head  waters  of  Lake  Superior. 


Office  of  BUchigan  Southern,  51  Dearborn  Street, 

CHICAGO.    ILL. 


GEOBGE  BLISS, 

u:.  Fbksident. 


J.  D.  CAMPBELL, 

SUFEBINTBNDENT. 


J.  NOTTINGHAM,  General  Agent. 


164 


mT  AIR  LINE  FRen  ROUf  B 

FROM  OHiOABO  AND  THE  NORTH-WEST 
TO  THE  ATXi  A.NTIC. 

PinSBURGI.  FORT  WAYNE  IID  CHICUO 

RAILROAD. 


THIS  New  and  Direct  Roate  is  now  open,  forming  a  direct  and  nnbroken 
Line  between  Chicago  and  Pittsburgh,  thence  by  its  connection  with  the 

GREAT  PENNSYLVANIA  RAILROAD 

TO  NEW  YORK,  BOSTON,  PHILADELPHIA,  BALTIMORE 

AND  Alili  EASTEBN  CITIES. 

The  advantages  offered  to  Merchants  and  movers  of  produce  from  the  North- 
West  to  the  seaboard  by  this  route  are  unrivalled.  The  great  disadvantage 
existing  on  all  other  lines  of  frequent  transfers  and  consequent  delays,  is 
avoided,  as  freight  is  handled  but  once  (at  Fittsbnigh,  and  then  without  cart- 
age,) betwc  a  Chicago  and  the  Atlantic,  thus  enabling  this  route  to  put  freight 
through  in  quicker  time  than  can  possibly  be  accomplished  by  any  other  line 
running  east  from  Chicago.  This  Road  also  has  a  connection  with  New 
York  Roads  via  Crestline,  Cleveland  and  Buffalo. 

Freight  can  be  shipped  direct  to  Buffalo  or  Dunkirk  without  change  of  cars, 
thence  to  the  seaboard  via  New  York  Central  or  New  York  and  Erie  Railroads. 

Our  connections  with  Roads  leading  from  the  great  granaries  of  the  West, 
are  such  that  drayage  and  commission  in  Chicago  are  avoided,  a  direct  transfer 
being  in  all  cases  effected  directly  from  the  cars  of  one  company  into  those  of 
the  other.  Rates  and  all  necessary  information  relative  to  transporting  property 
to  or  from  the  East  to  Chicago  and  the  West,  can  be  obtained  on  application  to 

JOS.  H.  MOORE,   JOHN  J.  HOUSTON,   JAS.  W.  MUSSON, 

OlML.  SUPT,  OeML.  FkIIGBT  AgT,  FuIOHT  AOBHT, 

OMitUne,  Ohio.  Pittsburgh,  Pa.  Chicago,  HI. 


PASSENGER    TRAINS 

Leave  the  Depot  daily  from  Chicago,  making  close  connection  with  all  trains 
for  Now  York,  Boston,  Philadelphia,  Baltimore,  Washington  City,  Buffalo, 
Dunkirk,  Niagara  Falls,  Cincinnati,  &c.,  &c. 

DANIEL  W.  BOSS, 

Genl.  Passsnqer  Agent. 


165 


ID  TRONK  RIWA! 


OFSXO*     8  41:9     ^.diXXjSSl 


-M* 


►M- 


Running  from  Stratford,  0.  W.,  through  Toronto,  down  the  bMika  of  the  St.  lAwrenoe,  to 
Montreal  and  Quebec,  where  It  conaeets  with  the 

CANADIAN  MAIL  STEAMERS  FOR  LIVERPOOL 

during  enmmer,  and  at  Portland,  Maine,  with  same  line  of  resiela  during  winter.  At 
Toronto,  the  Grand  Trunk  tnterchangee  trafflo  with  the  Great  ^feitem  Railway,  for  Detroit, 
and  also  with  the  Ontario,  Simooe  and  Huron  Railway  for  Collingwood,  94  mile*  from  Toronto, 
thua  haTing  a  fitrorite  summer  route  by  Lake 

FROM  COLLINGWOOD  TO  ALL  LAKE  MICHIGAN  PORTS 

And  the  Head  Waters  of  Lake  Superior. 
On  the  completion  of  the  main  line  west,  flrom  Toronto  to  Port  Samla,  and  the  extension 
to  Detroit,  which  will  run  through  the  best  settled  portion  of  the  State  of  Michigan,  tills 
Line  will  offer  one  unbroken  Link  of  Railway 

FROM  DETROIT  TO  TEE  ATLANTIC 

And  only  one  break  of  gnage  or  change  of  ears  from  all  Railway  towns  on  the  Mississippi 
Rlrer  to  the  Seaboard,  and  will  then  command  thr  whole  of  the  immense  traffic  between  the 
West  and  Montreal,  Quebec  and  other  St.  Lawrence  ports,  as  well  as  of  Portland,  Maine, 
and  the  States  of  Northern  New  Bngland,  hitherto  diverted  to  other  routes. 

The  Michigan  Central,  running  from  Detroit  to  Ohioago  through  the  centre  of  the 
State  forms  a  most  valuable  connection  for  this  line,  controlling,  as  it  does,  the  bulk  of  the 
flour  manufactured  at  the  rarions  towns  on  its  line  of  284  miles. 

At  Detroit  the  Michigan  Southern  Railroad  forms  a  direct  route  southward  to  Toledo,  Cin- 
cinnati and  all  towns  on  the  Ohio  River,  and  also  westward  through  Northern  Indiana  and 
Southern  Michigan  to  Chicago,  and  will  form  an  important  feeder  to  ihe  Grand  Trunk. 

At  Chicago  the  two  Michigan  Railways  connect  with  the  extensive  net-work  of  Railways 
traversing  Illinois,  Iowa,  Hisaouri,  Minnesota  and  Wisconsin, 

FROM  ST.  PAUL  TO  NEW  ORLEANS, 

Including  the  whole  range  of  the  Mississippi  Valley,  and  for  the  trade  of  which  States  Chi- 
cago is  the  great  distributing  point. 

On  the  completion  of  the  Detroit  and  Port  Samla  extension,  the  Grand  Trunk,  in  connec- 
tion with  the  B.  k  L.  H.  Railway  trom.  Stratford  to  Bufialo,  will  be  enabled  to  compete  on 
equal  terms  with  any  existing  line  for  the  carriage  of  the  humense  traffic  for  New  York,  &c., 
running,  as  they  will,  by  same  train 

From  Detroit  to  Bufilsdo, 

A  distance  of  247  miles,  120  miles  of  which  is  embrsMied  in  the  Grand  Trunk  Railway. 
Aside  firom  the  vast  goods  traffic  which  this  line  Is  destined  to  command,  it  forms  by  far 
the  most  delightful  and  romantic  route  to  and  from  the  West  and  the  Canados, 

BOSTON,  NEW  YORK  ANO  THE  EASTERN  STATES. 

Passengers  by  this  route  have  an  opportunity  of  visiting  some  of  the  grandest  and  most 
wonderful  scenery  in  the  world,  including 

TORONTO,  NIAGARA  FALLS,  SUSPENSION  BRIDGE, 

The  Thousand  Islands,  Rapids  of  the  St.  Lawrence,  Quebec,  Montreal,  White  Mountains, 
the  Tubular  Bridge,  (nearly  two  miles  in  length)  Lake  Champlain,  Falls  of  Montmorenci, 
Hudson  River,  &o. 

JAMES  WARRACK, 

Western  Agency,  30  Dearborn  St.,  Chicago,  Illinois. 


1G6 


THEIIICHIGIiNCEmilLRAILROiiD 

WttttBM  th«  nuMt  If ortlMrly  Tkroogh  Somt*  numlnff  from 

"WEST   TO   EA^ST, 

TRATBRSIirO   TBB    STATRB   OW 

MIOHIIQANI,   GNDDANA  AND    llLLDNOI8» 

DETROIT    TO    OHIOAGO, 


The  supariority  of  th«  rMd,  and  its  thotongh  eqalpinent,  at  a  lem  eompantlTe  ooflt  than 
other  competing  Unei,  hare  eomblned  to  make  It  a  fltrorlte  route ;  while  Iti  enlarged  bualneM 
flMiUtles  and  exteniWe  eonnectloni  enable  It  to  command  the  bulk  of  the  trade  and  traTel 
between  the  Weitern  Btatea  and  the  Oanadai,  New  York,  Boiton,  and  the  Xaetem  Marketi. 

At  Detroit  the  Mlohloan  Central  Interchanges  with  the  Oreat  Weatem  Railway,  from 
Detroit  to  Snapenilon  Bridge  and  Niagara  Falls :  also,  with  the  Buffido  and  Lake  Haron, 
orer  the  Oreat  Western,  at  Paris ;  offering  a  choice  of  routes,  either  via  Bulhlo  or  Suspen- 
sion Bridge,  for  all  Bastem  traTel. 

By  means  of  the  Great  Western  Road,  running  flrom  Detroit  to  Toronto,  the  Mielilgan 
Central  connects  at  that  point  with  the  Orand  Trui^k  for  Montreal,  Quebee,  Portland,  and 
all  the  principal  Towns  in  Northern  New  England  and  thu  British  ProTlnces.  This  trade 
is  destined  to  receive  large  deTelopmenu.  On  the  completion  of  the  Extension  from  Detroit 
to  Port  Samia,  now  building,  to  connect  the  Orand  Trunk  of  Canada  with  the  MtnMg^i^ 
Central,  this  wUl  form  the 

GREAT  INTERNATIONAL  LINE 

KOM  THB 


As  there  will  be  but  one  transhipment  or  change  of  oars  between  the  River  Towns  on  tht 

Mississippi  and  the  Seaboard. 

The  local  traffic  of  this  Road  is  the  largest  of  any  in  the  Western  Country,  as  the  Towns 
on  the  Line  of  Road  are  the  oldest  settled  and  most  flourishing  in  the  State. 

At  Detroit,  the  Company  have  the  larceBt  harbor  accommodations,  and  facilities  (br  handling 
property,  in  the  West.  Steamers,  or  the  largest  class,  belonging  to  the  Company,  are 
engaged  in  the  fi«lght  service,  flrom  Detroit  to  the  principal  ports  on  Lake  Erie,  and  to 
Buffalo.  Having  large  Orain  Elevators  at  this  point,  the  Company  dally  receive  and  handle 
large  quantities  of  Orain,  conveyed  direct  to  Detroit  ttom  the  interior  of  Illinois,  Michigan, 
Indiana,  and  other  points. 

At  Chicago,  the  Company  possesses  an  important  and  controlling  interest  in  the  harbor 
flacillties  there  :  and  its  intimate  connection  with  the  Illinois  Central,  Chicago,  Burlington 
&  Quincy,  and  Oalena  ft  Chicago  Union  Roads,  in  the  joint  use  of  the  one  spacious  Depot 
occupied  by  these  several  companies,  gives  this  Company  special  advantages  fbr  seciuing  the 
immense  traffic  running  over  these  several  Lines. 

To  this  may  be  added  the  traffic  derived  from  the  Line  of  Steamers  running  to  the  North 
Shores  of  Lake  Michigan,  and  the  flirther  connection  with  the  North-West  over  the  Oalena 
&  Chicago'Unlon,  Chicago  fc  Milwaukee,  and  Chicago,  St  Paul  ft  Fond  du  Lab  Roads, 
traversing'the  rich  and  fertile  territories  of  Iowa,  Wisconsin  and  Minnesota. 

This  Line  owns  and  controls  the  Joliet  and  Northern  Indiana  Roilroad,  running  ftt>m  the 
Head  of  Lake  Michigan  in  a  direct  line  westward  to  Joliet,  where  it  connects  with  the 
Chicago  fc  Rock  Island  Railroad,  making  ahnost  an  air  line  from  Detroit  to  the  Mississippi 
River ;  also,  at  the  same  place,  with  the  St.  Louis,  Alton  &  Chicago,  for  St.  Louis  and  the 
South-West. 


167 


! 


xeqe. 

BVPFILO  m  LAKE  HURON  RIILWIT, 

BIINO  THK  ONLY  THROUGH  OOMMUNIOATION  HlOM 

LAKE  HURON  TO  LAKE  ERIE. 

RUNNING  FROM  BUFFALO  TO  GOD^RIOH. 

<j^<»i> 

This  route  will  open  up  a  now  channel  of  trade,  via  Goderich,  on  the  S.  E. 
shore  of  Lake  Huron,  whence  steamers  and  sailing  vessels  will  ply  to  all 
upper  Lake  ports. 

At  Stratford  it  connects  with  the  Grand  Trunk,  of  Canada;  at  Paris,  with 
the  Great  Western ;  then  follows  the  Grand  Hirer,  via  Brantford,  to  Buffalo. 

The  through  trade  from  Chicago,  and  traffic  in  Live  Stock  done  over  this 
road  the  past  season,  was  immonse. 

<^>H<^> 

•rXXIS   RO^D    OOXTXTSOTS, 

THROUQH  THE  GREAT  WESTERN, 

WITH 

THE  MICHIGAN  CENTRAL,  AT  DETROIT, 
AND  80  ON  TO  CHICAGO, 

WITH  ALL  LINES  NORTH,  SOUTH  AND  WEST. 


-c^oH-f;"- 


At  the  Eastern  terminus  (Buffalo),  by  means  of  an  International  Steam 
Bridge,  property  is  rapidly  transferred  to  the  Central  Depot,  in  Buffdo,  where 
a  choice  of  routes  eastward  is  offered  to  the  shipper ;  either  by  the  New  York 
Central,  New  York  and  Erie  Railroads,  or  by  the  Erie  Canal  route  to  Albany. 
On  completion  of  the  Grand  Trunk  Extension  to  Detroit,  and  by  means  of  its 
connection  with  the  Buffalo  and  Lake  Huron,  at  Stratford,  a  through  route 
from  Detroit  to  Now  York,  via  Buffalo,  will  be  established,  that  will  form  an 
important  outlet  for  Eastern  travel. 

B.  H.  BABLOW, 

Mdntigitig  Director,  Brantford,  C,  W. 
JOHN  MoKIBBKTAN, 

OenH  Ticket  Agent,  Buffalo,  N.  Y. 

JAS.  WARRACK,  30  Dearborn  St.,  Chicago. 

Q.  L.  NUTTEB, 


OmtH  Western  Agent,  Detroit. 


168 


THB  WBSTfiRN  TRINSPOITITION  CONPiNY. 

-4 

Capital  $800,000. 


OTRT78  OJUABKB,  PmldMit. 
WBC  FOOT,  VlM  Pmidmit. 


JOHN  ALLEN  I  Jr.,  Tnuant. 
OBO.  Hi  BRTAMT,  8«or»tary. 


DIBIOTORB. 


P.  S.  MARSH,         BafiUo. 
P.  L,  STERNBERG,      " 
WM.  FOOT, 
JASON  PARKER, 
CYRUS  CLARKE,         " 
JOSHUA  MAXWELL,  " 


Buffalo. 

New  York. 

Brooklyn. 

Albany. 

Mohawk. 

Detroit. 


JOHN  ALLEN.  Jb., 
EVERETT  CLAPP, 
HUGH  ALLEN, 
S.  O.  CHASE, 
SAMUEL  MORGAN, 
J.  L.  HURD, 
GEO.  H  BRYANT,  Tonawanda. 

Having  complotod  its  arrangements  for  the  ensuing  season,  this  Company 
will  be  prepared,  on  the  opening  of  navigation,  with  unsurpassed  facilities,  to 
transport  Mei'chandise,  Railroad  Iron,  and  other  pnwerty,  to  and  from  New 
York,  Philadelphia,  Boston,  Albany,  Troy  and  ports  on  Lakes  Brie,  Michigan 
and  Huron,  by  the  Hudson  River  and  Erie  Canal,  at  low  rates. 

The.  work  of  the  Erie  Canal  Enlargement  is  now  advanced  so  near  to  com- 
pletion, the  Company  feel  warranted  in  guaranteeing  to  its  customers  such 
increased  promptness  and  dispatch  between  New  York  and  Buffalo,  as  to  com- 
mand satisfaction. 

THE  WESTERN  EXPRESS  COMPANY, 

Owned  and  operated  by  the  Western  Transportation  Company,  will  run,  as 
heretofore,  over  the  New  York  Central  Railroad,  between  Buffalo  and  New  York, 
and  by  steam  on  the  Lakes. 


HUGH^ALLEN.^^'  }  ^°-  *  ^°'°^''*'  "^"P'  ^'^  ^*"'''- 

AUGuItoS^S)lIoN.  h  ^*'*'"  '^**"^°  ^"^"^'"8'  ^*^  ^'''^^ 

S.  G.  CHASE,  113  Pier,  Albany. 

J.  W.  TUTTLB,  191  River  Street,  Troy. 

J.  M.  WILDER,  86  State  Street,  Boston. 

LORENZO  HUNTLEY,  5  Sweeny  Street,  Tonawanda. 

ROLLIN  ROBINSON,  Foot  State  Street,  Chicago. 

JOHN  J.  TALLMADGE,  Mil.  &  Miss.  Railroad  Dock,  Milwaukee. 

J.  L.  HURD  &  CO.,  Hurd's  Dock,  Detroit. 

00X4*  Sid- JtT  Bsa. 


Kenoslia  Pier  Company,  Kenosha. 
Dickinson  &  Wright,  Waukegan. 
J.  F.  Kirkland,  Sheboygan. 
John  Heam  &  Co.,  Erie. 


Johnson  &  Hodges,  Manitowoc. 
Day  &  Thomas,  )  „^_  ^^^ 
Whitney  &  Co.   J^'^^^^'^y- 
T.  N.  Bond,  Cleveland. 
Railroad  Agent,  Sandusky. 
John  Sinclair,  Toledo. 


BHfrmlo  Offiee  »na  Boekt  mt  XrU  Bm»in* 


169 


COLLINGWOOD  LINE!! 

Tri-Weekly  Line  of  Flnt  OkuM 

NEW  tkMB  RmONOPfiOeNT 


MONTGK>MERT, 

996  Tona. 

OAPT.  NIOELESON. 

HUNTER, 

681  Tons. 

OAFT.  DIOESON. 

EVBRaRBIIN  OIT7, 

624  Tons. 

OAPT.  BAIX. 

ONTONaOON, 

620  Tona. 

OAPT.  WUAINS. 

One  of  the  above  Boats  will  leare  her  Dock,  foot  of  La  Salle  Street,  every 

Tuesday,  Thursday  and  Saturday, 

.^t  7  0'ol^olx.y   3E*a  Ti/BCmf   Tor 

coLLiisrGA\^oor>, 

.  Connecting  vrith  the 

ONTARIO,  SIMCOE  AND  HURON  RAILROAD, 

For  TORONTO,  and  at  Toronto  with  the 

FOR    KINGSTON,    MONTREAL,    PORTLAND,    QUEBEC,    BOSTON, 

And  all  intermediate  places ;  and  with  Steamers  from  Toronto  for 

LEWISTON,  OSWEGO,  CAPE  VINCENT  and  OGDENSBURG,  connecting  with  the 
different  RaUroads  to  all  principal  Cities  of  the  East,  and  forming  a  speedy  and  safe  commu- 
nication for  Passengers  and  Movers,  for 

LESS  THAN  TWO-THIRDS  OF  USUAL  RAILROAD  FARE, 

And  also  forming  a 

To  and  i>om  all  the  principal  Cities  of  the  East, 

Boston,  New  York,  Albany,  Ogdensbnrg,  Oswego,  Quebec,  Montreal,  Kingston,  et  cetera, 

Connecting  «t  MACKINAC  with  the  splendid  Steamboat  LACY  ELGIN,  Capt.  E.  H. 

Tompkins, 'for  all  ports  on 

L^KE  SUPERIOR. 

1  lis  Line  is  also  reliable  for  parties  wishing  to  take  parage  or  ship  freight  to  and  from  all 
points  on  the  W»st  Shore  of  LAKE  MICHIOAN,  aa  far  North  as  TWO  BIVEB8. 


FOR  THROUGH  TICKETS  AND  CONTRACTS, 

Apply  at  the  CQmpaay'a  Office,  FOOT  OF  LASALLE   STREET. 

A.  T.  SPENCER  &  CO.,  Agents,  Chicago. 

GEO.  DOUSEMUr  &  CO.,  Milwaukee. 

JAMES  HOUQHTON,  Solicitor  of  Passengers,  Ohicago. 


SB  i; 


Ill 


170 


MUNN&  SCOTT, 


AND 


GOMMISSIOF  MERCHAlfTS 


FOB  THB 


FUBCHASE,  SALE  AHD  SHIPMENT  OF 

CORNER  OF  OANAL  AND  OAROLL  STRBBTS. 


— cS<f +»!>.- 


Machinery  for  cleaning,  and  Kilns  for  drying  Grain,  attached  to  oar  Elevators, 
that  will  prepare  it  for  shipment  to  any  distance. 

S.  B.  POMEROY  &  CO. 

Nos.  2fs6  to  272  South  Water    street,  Chicago,  IlL, 


FOB  TBS  FCB0BA8G  AND  SALI  OF 

All  kinds  of  Prodarr^  FroTislons,  Flour,  etc. 

Liberal  adTances  made  on  consign:  at nts,  for  sale  here  or  in  Eaatern  markets. 
EztcnsiTO  macl)lnery  for  perfectly  clean!  ag  Grain  before  shipment.    Also,  machinery  for 

dryiug  dajiaged  Qrain. 
May  1, 1858, 

HOWE,  ECKLEY  &  CO. 

PRODUCE    COMMISSION    MERCHANTS, 

AND 

oziio.A.a-0,  iiiijiisTois- 


1858> 


RATES     OF     STORAGE. 


1858. 


s„.>n.».  Rn*M  /  2  cts.  for  Railroad  Grain,     mrs-,-- n-,-.   ( 4 cents  from  Nor.  Ist 
Summer  »■««■•(  i  ct.  for  Canel-boac  Grain.   Winter  Ro««b.  |     to  April  15th. 

The  above  Elevators  have  a  Storaee  Capacity  of  600,000  bushels,  and 
receive  Grain  from  Galena  and  Chicago  Union  Railroad,  Dtxon  Air  Line  Railroad,  Chicugo, 
Builir/gton  and  Quincy  Itailroad,  and  Illin  .is  Central  Railroad,  and  Canal. 


171 


1     V 


s.t,,  J,  ^ 


?,1' 


It " " 


UNDERWOOD  &  CO. 

COMMISSION  MERCHANTS, 

152    SOUTH   WATER    STREET, 


CULVER   &  BUNKER, 

COMMISSION  MEiOMANT 

For  the  Sale  and  Pnroliase  of 

FLOUR,  GRAIN,  PORK,  &C. 

IBS    SOXJO?!!    ■^T.A.TBK.    Sa7R,BET, 
CHICAGO,     ILLINOIS. 


£.  J.  CULVER. 


C.  'E.  CULVER. 


C.BUNKER,  Jr. 


LATE    AQENT    OF    I..    RENAUD    AND    FRERE,    MONTREAL, 

COMMISSION  MERCHANT  AND  BROKER 

OFFICE,   NO.   6   DEARBORN    STREET. 
CHICAGO,    ILIilNOIS. 


) 


Messrs.  Ii.  Benaud  h  Frere,  Montreal. 

"      Connolly,  Lantier  &  Co.    '• 
C.  J.  Cusack,  Eiq.  " 

Messrs,  Uumsoy,  Bros.  &  Co.,  Chicago. 


Messrs.  Connolly  &  Co., 
"  H  J.  Noad  &  Co. 
"  Geo.  Steel  &  Co, 
"       Flint  &  Wheeler, 


Quebec. 
Chicago. 


Poit  Office  Box  2336. 


ROBERT  L.  FABIAN, 
MERCHANDISE  BROKER  AND 


11  DOLE'S  BUILDING. 

CHICAGO,  -  -  x  iimois* 


Refersnoes — Merchants  generally  of  Chi- 
cago and  Cincinnati. 


DICKINSON,  PARKE  &  DUEL, 

mmm  commission 

For  the  Purchase  and  sale  of  all  kinds  of 
Produce,  Flour,  Grain,  Seeds,  Proyisions,  &o. 

Office,  12  Fomeroy's  Building, 

COB.  SODTD  CLABK  <s  WATER  8TS. 

CHICAGO,  ILL* 


A.  F.  DICKINSON.  \ 

W.  O.  PARKE. 

DAVID  BOBt.         )  P.  0.  Box  No.   &17. 


1  P.   0. 


172 


!    I 


HENRY    MILWARD, 


CHICAGO,    ILLINOIS. 


T.    D.  HA.i:.L, 

CHICAGO,     ILL. 


BRIGGS  HOUSE, 

Cor.  Randolph  &  Wells  Sts. 


TREMONT  HOUSE, 

COR.  LAKE  AND  DEARBORN  STREETS, 

CHICAGO,  ILL 


./•*,'*./•*,'%./*■ 


ExtensiTe  alterations   and   ImproTements 
have  been  made  by  the  present  proprietors. 

WM.  F.  TirCKEB  &  CO. 


Accommodattonfor  Four  Hundred  guests. 

OAOE  BSO.  &  DBAKE, 

Froprietobs. 


VAN  mWAOEN  &  CO. 

PRODUCE 

COMMISSION  MERCHANTS, 

Office*  No*  3  Dole'a  Bnildlnff* 

Cor.  Clark  ^  S.  Water  Sta. 
CHICAGO,    -    -    ILLINOIS. 


g^Cash  advances  made  on  produce  for 
sale  In  Ohicago,  Buffalo  or  New  York  markets. 


ROBERT  HERYET, 

Attorney  &  Counsellor 

AT    LAW, 

OVSTOK     BOUSI    BUILDDia, 
BTO  IS  I4A  SAI^IiX:  STREET, 

CHICAGO,  IhU 


Commissioner  for  Kentucky,  Ohio,  Iowa, 
illssouri,  Indiana,  Wisconsin  and  Rhode 
\  iland. 


Q.    H.    &    L.    LAFLIN, 

Wholemle  Dealers  lu 

COARSE  AND  FINE  PAPERS, 

Of  Svery  Kind  and  Description. 

Warehonaei  85  Sonth  ITater  Bt. 

CHICAGO,    ILL. 

a,  H.  LAFUN.  L.  LAFLIX.  J.  0.  DAT 


€.  J.  KERSHAW, 

mu  m  coHmssiDii 


CHICAG-O,    ILL. 


173 


I 


m 


WESTERN  LAND  AGENCY. 


A.  J.   GALLOWAY   &  CO., 

76  LEike  Street,  Chicago, 

Have  for  sale  150,000  acres  of  choice 

FARMING  LANDS, 

On  the  Line  of  the  111.  Central  Railroad, 

Which  they  will  sell  to 

ACTUAL  SETTLEItS 

Upon  long  credits  and  low  rates  of  interest.  They  also  have  200,000  acres 
lying  in  the  vicinity  of  the  Kailroads  of  Illinois,  for  sale,  on  reasonable  terms. 
They  are  also  Agents  or  owners  for  the  sale  of  Town  Lots  in  the  new  and 
flourishing  villages 

Upon  the  Line  of  the  Illinois  Central  Railroad* 

Either  at 

KANKAKEE,  ONARQA  LODA,  URBANA,  FARINA, 
EDGEWOOD  OR  EFFINQHAM. 


All  centers  of  trade  for  large  Agricultural  Districts,  affording  to  tlie  Mer- 
chant and  Mechanic  locations  unsurpassed  in  the  West  for  trade  and  profits 
from  productive  industry. 

Their  Local  Agents  at  either  of  the  above  places,  will  assist  parties  desiring 
to  purchase,  by  selecting  land  or  lots,  and  give  general  and  correct  informa- 
tion regarding  the  same. 

[IF"  Address — 

A.  J.  GALLOWAY  &  Co., 

75  Lake  Street^  Chicago,  111. 


174 


INDEX  TO  ADVERTISEMENTS. 


Pkge 

Illinois  Cektbal  Bailroad, 163 

MiOHIOAM    SODTHERN        "             164 

FixTSBUBGH  &  Fort  Way.v b  Hailroad, 165 

Grand  Trunk  Railroad,  oj^  Cajstai^a, 166 

Michigan  Central  Bailkoax), 167 

Buffalo  &  Lake  Huron  Bailhoab , 168 

Western  Transportation  Co 169 

CoLLiNOWOOD  Line, 170 

MuNN  &  Scott,  Elevatori — 171 

S.  B.  POMEROT  &  Co 171 

Howe,  Ecklet  &  Cc, 171 

Underwood  &  Co.,  Commission, 172 

Culver  &  Bunker,           "          172 

J.  Leduc,                            "           172 

B.  L.Fabian,                    "          172 

Dickinson,  Farke  &  Buel,  Commission,  172 

HbnBT  MiLWARD,                              " 178 

T.  D.  Hah.,                                     "           173 

Van  Inv. -^uEN  &  Co.,                      "             173 

C.  J.  Kershaw,                                "           173 

G.  H.  &  L.  Laflin,  Paper, 173 

BoBERT  Hbrvey,  Attornet,  173 

Trhmont  House  Hotel,,  .       173 

Brioos  House  Hotel, 173 

A.  J.  Gallowat  &  Co.,  \v  estbbn  Land  Aoenct, 174 


